• TABLE OF CONTENTS
HIDE
 Front Cover
 Table of Contents
 Introduction
 Summary of 326 groves, crop year...
 Location of groves
 Price recieved for fruit
 Summary of costs for 300 groves,...
 Fertilizer used by age of...
 Summary of costs and returns, crop...
 Relation of age to costs and...
 Effect of irrigation upon costs,...
 Cost of producing oranges
 Relation of fertilizer used for...
 Cost of producing grapefruit
 Average price received by years...






Group Title: Misc. Pub.
Title: Florida citrus costs and returns
CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00090266/00001
 Material Information
Title: Florida citrus costs and returns
Alternate Title: Miscellaneous publication - Florida Cooperative Extenion Service ; 26
Physical Description: 31p. : ill. ; 23 cm.
Language: English
Creator: Howard, R. H.
Publisher: Florida Cooperative Extenion Service
Place of Publication: Gainesville, Fla.
Publication Date: July, 1938
Copyright Date: 1938
 Subjects
Subject: Citrus fruit industry -- Economic aspects -- Florida   ( lcsh )
Genre: non-fiction   ( marcgt )
 Notes
Statement of Responsibility: by R.H. Howard.
General Note: Cover title.
General Note: "July, 1938."
 Record Information
Bibliographic ID: UF00090266
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.
Resource Identifier: oclc - 309850205

Table of Contents
    Front Cover
        Page 1
    Table of Contents
        Page 2
    Introduction
        Page 3
        Page 4
        Page 5
    Summary of 326 groves, crop year 1935-36
        Page 6
    Location of groves
        Page 7
        Page 8
        Page 9
    Price recieved for fruit
        Page 10
    Summary of costs for 300 groves, 1936-37
        Page 11
    Fertilizer used by age of trees
        Page 12
        Page 13
        Page 14
    Summary of costs and returns, crop years 1930-31 through 1935-36
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
    Relation of age to costs and returns
        Page 20
    Effect of irrigation upon costs, yields, and net returns
        Page 21
        Page 22
        Page 23
    Cost of producing oranges
        Page 24
        Page 25
        Page 26
    Relation of fertilizer used for orange trees to age
        Page 27
    Cost of producing grapefruit
        Page 28
    Average price received by years and varieties for citrus fruits
        Page 29
        Page 30
        Page 31
Full Text




Misc. Pub. 26


July, 1988


COOPERATIVE EXTENSION WORK IN
AGRICULTURE AND HOME ECONOMICS
(Acts of May 8 and June 30, 1914)
Agricultural Extension Service, University of Florida
Florida State College for Women
And United States Department of Agriculture
Cooperating
Wilmon Newell, Director


costs by
operations:


SEVENTH ANNUAL SUMMARY



FLORIDA CITRUS COSTS


AND RETURNS

By R. H. HOWARD

Period 0 $4 $8 $12 $16 $20 $24 $28


1980-81
1981-82
Labor, Power 1932-88
& Equipment 1988-34
1984-85
1985-86
1986-87
1980-81
Fertilizer 1981-82
1982-88
1988-84
1984-85
1985-86
198647
1980-81
Spray and 198142
Dust 1982-8
1988-84
1984-86
1985-86
1986-87
1980-81
Taxes 198182
1982-88
1988-84
1984-85
1985-86
1986-87
1980-81
Other Costs 1981-82
1982-88
1988-84
1984-85
1985-86
1986-87


182


0 $4 $8 $12 $16 $20 $24 $28 $85
Costs per Acre
Fig. 1.-Costs per acre for 58 groves, crop years 1930-31 to 1986-87.

Bulletins will be sent free to Florida residents upon request to
AGRICULTURAL EXTENSION SERVICE
GAINESVILLE, FLORIDA


C
0


MEN



















CONTENTS

PAGE
I. INTRODUCTION.
General Outlook for Citrus Fruits ............................ ................. 3

II. SUMMARY OF 326 GROVES, CROP YEAR 1935-36.
Location of Groves .................. ............ .................. 7
Cost of Production and Returns .................. ......... .......... 7
Price Received for Fruit ............................... ...... ................. 10

III. SUMMARY OF COSTS FOR 300 GROVES, 1936-37.
Location of Groves .......................... ........ .................. ..... 11
Cost of Production ........... ...... ...... ....................... 11
Fertilizer Used by Age of Trees .............................................. 12

IV. SUMMARY OF COSTS AND RETURNS, CROP YEARS 1930-31 THROUGH
1935-36.
Costs and Returns for 53 Groves ................................ .......... 15
Relation of Age to Costs and Returns ..................................... 20
Relation of Age to Yield ...................... ..... ............... .............. 20
Effect of Irrigation Upon Costs, Yields, and Net Returns .......... 21
Cost of Producing Oranges ....................................... ........... 24
Relation of Fertilizer Used for Orange Trees to Age .................. 27
Cost of Producing Grapefruit ..................................... ............ 28
Average Price Received by Years and Varieties for Citrus
F ruits ............................... .......... .............................. ... 29









SEVENTH ANNUAL SUMMARY


FLORIDA CITRUS COSTS

AND RETURNS

By R. H. HOWARD'

This is the seventh annual report of cost of production and
returns on Florida citrus groves. This study has been conducted
by the Agricultural Extension Service in cooperation with a
group of interested growers who have kept and supplied their
grove records.
It is the purpose of this study to provide growers and the
industry with authentic data on the business of growing citrus
in Florida, that net returns to owners may be increased by
determining both the profitable and the unprofitable practices.
It is hoped that this may be accomplished in two ways. First,
growers who supply their grove costs and other information will
be furnished a detailed summary and analysis of their opera-
tions so that each may compare his individual summary with the
average of all grove records for a particular year. Second, the
collection and study of a representative number of grove records
over a period of years may be the basis for determining more
accurately the factors affecting costs, yield, and net returns
to the owner.
General Outlook for Citrus Fruits: Indications are that pro-
duction of all citrus fruits will be on the upward trend, if frost
and other hazards do not again reduce the crops and number
of trees. The increase in production will come from two sources,
bearing trees five years old and over which have not yet reached
full bearing age, and younger trees which will reach bearing age.
Movement of citrus trees from the nurseries to groves in
Florida since the 1928-29 season is shown in Table 1. Since
1934-35, plantings have increased materially. Although part
of the new plantings in 1935-36 and 1936-37 were replacements
due to cold injury in December 1934, there have been large
acreages of new grove plantings also.
'The writer acknowledges his indebtedness to Dr. R. M. Barnette of
the Experiment Station staff who read the manuscript and made valuable
suggestions. A great deal of credit is due to the County Agricultural
Agents in Lake, Orange, Polk, and Highlands counties for assisting grow-
ers and collecting their records. Much credit is due Dr. C. V. Noble, Head
of the Department of Agricultural Economics, for his valuable suggestions.







Florida Cooperative Extension


According to a tree count at about three-year intervals, made
by the Grove Inspection Department, Florida State Plant Board,
from 1919 and through December 1934, the actual number of
citrus trees increased from about 111/3 million to almost 261/2
million in Florida.
TABLE 1.-MOVEMENT OF CITRUS TREES FROM NURSERIES TO GROVES IN
FLORIDA, BY SEASONS, 1928-29 TO 1936-37, INCLUSIVE.*
Number of Trees
Season Mandarin
Orange Grape- or All Total
Fruit Kid Glove Others
1928-29 .............. 699,343 305,641 271,403 86,151 1,362,538
1929-30 ............ 295,031 330,266 139,877 20,742 785,916
1930-31 .............. 401,023 264,803 91,725 30,719 788,270
1931-32 .............. 430,379 73,401 62,492 37,577 .603,849
1932-33 .............. 499,679 144,597 53,391 64,923 762,590
1933-34 .............. 440,429 158,471 74,187 80,973 754,060
193435 .............. 351,289 89,468 30,880 56,082 527,719
1935-36 5......... 30,564 153,986 34,128 103,715 822,393
1936-37 .............. 746,849 106,421 38,427 164,290 1,055,987
*Florida State Plant Board. Season runs from July 1 to June 80. Seedlings and
budwood not included.

Of the 34,600,000 bearing trees (five years old and over)
estimated in the groves of Florida, California, Texas and Ari-
zona in 1937, 45 percent had not reached full production and
26 percent were in the relatively young group of 5 to 10 years
of age. With this proportion of the bearing trees yet to come
into full bearing, it seems reasonably certain that average pro-
duction during the next five years will be larger than that of
the last five years. An average for the next five-year period
of 55 to 60 million boxes seems probable, whereas the average
for the last five years (1932-36) was slightly over 54 million
boxes.
Bearing acres of grapefruit have increased rapidly during
recent years and production is rising sharply. Under average
growing conditions, it seems certain that the average produc-
tion of the next five marketing seasons will exceed 25 and may
reach 30 million boxes. It appears that since 69 percent of the
grapefruit trees in Florida, Texas, California and Arizona have
not reached full production, crops of 30 million boxes or more
may be expected during the next 10 years. Average production
for the 10-year period 1927 through 1936 was a little less than
15 million boxes, according to the Farm Outlook for 1938 pub-
lished by the Bureau of Agricultural Economics, United States
Department of Agriculture.








Florida Citrus Costs and Returns


The per capital production of the seven major fruits, including
three kinds of citrus, during the six-year period 1925-30 was
167 pounds-the same as during the past six-year period 1931-36.
Although there was an increase of 4 percent for the seven major
fruits from the six-year period of 1919-24 to 1925-30, the total
per capital production remained the same for the next six-year
period (1931-36). The increase in citrus production since 1919-
24 was offset by the decline in apples and peaches. Each of
the three citrus fruits included-oranges, grapefruit and lemons
-showed an increase in production each period over the pre-
ceding one. The increase in production for these citrus fruits
amounted to 63 percent during the 12 years. Of the citrus
fruits included, grapefruit showed the greatest increase of 100
percent during the 12-year period, as shown in Table 2.
TABLE 2.-PER CAPITAL PRODUCTION OF FRUITS.

1919-24 1925-30 1931-36
Lbs. per capital Lbs. per capital Lbs. per capital
Apples .......................... 71 61 57
Peaches ........................ 21 20 19
Pears ............................ 8 9 10
Grapes .......................... 31 38 32
Citrus-total .............. 30 39 49
Oranges ................ 21 27 32
Grapefruit ........... 6 8 12
Lemons ................ 3 4 5

Total 7 fruits .............. 161 167 167

Bananas ........................ 20 26 20

United States Department of Agriculture, Bureau of Agricultural Economics, Washing-
ton, D. C.

If economic conditions which affect demand do not improve
materially, growers will have to adjust their grove manage-
ment to relatively low prices. Whether or not the present acre-
age will be maintained depends upon economy in production
and marketing, as well as improvement in demand for citrus
fruits. Therefore, it is the ultimate purpose of the citrus cost
of production and returns study to determine the more import-
ant factors affecting net returns to the owners of groves in
Florida which will enable them to maintain or improve their
income through more efficient management that will reduce
costs of production per box.







Florida Cooperative Extension


II. SUMMARY OF 326 GROVES, CROP YEAR 1935-36
The crop produced in 1935-36 but harvested in 1936-37 was
the second highest average yield harvested in Florida, accord-
ing to the grove records since 1930-31, and amounted to an
equivalent of 138 standard boxes per acre. The average yield
for the crop produced in 1930-31 but marketed the following
year was 166 boxes per acre. Because of comparatively high
production, greater consumer purchasing power, fair quality,
and the best price received for all fruit sold during the six-year
period, average net returns to owners were the greatest since
the study began in 1930.
According to the records, cost of production was lower than
in the first few years of the study. However, the records dur-
ing the six years show that growers are more careless of costs
when prices for fruit are high. There has been a trend toward
less cultivation, use of more efficient and economical machinery,
more irrigation, and greater use of soil amendments which on
the average have indicated more profitable operations in the
management of a grove. Many of these and other profit-
determining methods have not been practiced by the average
grower, though a large number are finding them profitable.
The cost of production, returns and profit-determining factors
in this report will not apply to every citrus producing area in
Florida. They are believed to be representative and to apply
to the management of groves in the interior citrus producing
counties.
TABLE 3.-DISTRmUTION OF 326 GROVE RECORDS BY COUNTIES AND AGE
GRouPS, CROP YEAR 1935-36.

Counties Number of Groves
_4-10 Years 11-42 Years All Groves
Lake --........................................ 18 91 109
Polk .......................... ............ 3 77 80
Orange ...................... ............ 15 44 59
Highlands ................................ 2 38 40
Pasco ........... .............. 8 8 16
Miscellaneous ..... ............. 8 14 22

Total .................................. 54 272 326







Florida Citrus Costs and Returns


Location of Groves: Records on 326 groves were furnished
by growers who supplied their cost accounts for 1935-36 and
returns on the crop produced principally during that year but
marketed in 1936-37. Location of groves from which complete
records were obtained, by principal counties and age groups, is
shown in Table 3. Of the 326 groves, 304 or approximately
93 percent, were in Lake, Polk, Orange, Highlands and Pasco
counties. According to a tree survey made in the summer and
fall of 1934 these counties had 51 percent of all bearing citrus
trees in Florida. As the project progresses, it is planned that
more grove owners and operators from both the East and the
West Coast producing areas will be served in the future.

TABLE 4.-SUMMARY OF COSTS AND RETURNS PER ACRE AND PER BOX,
326 GROVES, FOR THE CROP YEAR 1935-36.

Groves Your
Item 4-10 11-42 Grove*
Years Years
Number of groves .................................... 54 272 ......................
Total acres of groves .............................. 1362.5 8766.3 ...................
Average acres per grove ........................ 25 32 ....................
Average age ............................................ 7 18 .......................
Number trees per acre ......................... 67 60 ........................
Percent trees grapefruit ........................ 23.2 29.7 .......................
Boxes harvested per acre ...................... 74 138 ......................

Costs per Acre:
Labor, power and equipment ......... $20.45 $21.72 ........................
Fertilizer and amendments ................ 15.79 21.80 ........................
Spray and dust material .................... 2.91 3.81 .....................
Taxes ......................................... .. 2.67 5.75 ...................
Miscellaneous ....................................... .48 1.79 ....................
Interest on grove valuation @ 6% 25.29 32.73 ......................
Total cost per acre excluding
owner's supervision ........................ $67.59 $87.60 ........
Total returns per acre .......................... 87.27 144.10 ........................
Net returns per acre to owner ............ 19.68 56.50 .....................

Total cost per box excluding
owner's supervision ....................... $ .91 $ .63 ........................
Average returns per box ........................ 1.18 1.04 ........................
Net returns per box to owner ................ .27 .41 .....................

*This column is for the specific use of cooperators. Other interested readers also Iiay
find it useful.

Cost of Production and Returns: A summary of costs and
returns per acre and per box for groves 10 years and under,
and groves over 10 years old, is shown in Table 4. These and






Florida Cooperative Extension


other cost data throughout the report include all cash expenses,
interest on average valuation at beginning and end of crop year
at 6 percent, interest and depreciation on equipment if owned,
as well as work done by owner or member of family at the pre-
vailing rate paid for similar work hired. Value of supervision
by owners was not charged; however, hired supervision was in-
cluded. Thus the net returns per acre and per box as given in
the summary represent the amount left to the owner for his
personal supervision and profit.
The interest charged on grove valuation was based upon the
grower's estimate of market value of trees and land in order
to eliminate any great difference due to time of purchase or
cost of producing the grove. This would tend to put each grove
on an equitable basis for comparison, whether all capital was
owned by the grower or a part borrowed.
The groves were divided into two age groups-those between
4 and 10 years inclusive, and those 11 years of age and over,
the oldest grove being 42 years old. The care given a grove
under 11 years of age is largely for developing the trees to a
profitable bearing age, although the age at which the average
grove will return a profit depends upon the extent of good man-
agement, location, natural adaptability of soil, yield, and the
price received for fruit produced.
Of the 54 groves 10 years old and under, 31 showed a net
return to owners which averaged $80.22 per acre. The relatively
high net returns were principally due to exceptionally good
yields for trees between 8 and 10 years old which averaged
130 boxes per acre, a high percent of orange trees, and the fact
that the price received for oranges was about three times greater
than for grapefruit or tangerines. However, the yield obtained
from these groves was the result of care as revealed by cost
incurred for developing the grove and fruit production. Approx-
imately 24 percent more money was spent per acre during the
crop year for care of these groves than was spent for the care
of all groves in this age group.
The 23 groves 10 years old and under which lacked an average
of $29.62 of paying all costs had very low fruit yields and a
high percent of the trees were grapefruit. These groves were
the younger plantings of the whole group.
SThe average cost per acre excluding owner's supervision for
the 272 groves over 10 years old, covering 8,766 acres, was
$87.60 in 1935-36, as shown in Table 4. The average cost per






Florida Citrus Costs and Returns


acre for maintaining the groves and producing the fruit was
the greatest since 1931-32, when the price of fruit was the
highest for the period between 1930-31 and 1934-35, inclusive.
(See Table 17.)
Yield per acre for all groves over 10 years old was the highest
for the crop produced in 1935-36 but marketed in 1936-37, ex-
cept for that produced in 1930-31. However, the average price
received per box for all fruit sold and net returns to owner were
greatest for the crop produced in 1935-36, which averaged $1.04
for oranges and $0.41 for grapefruit.
Of the 272 groves over 10 years old, fruit receipts from 222,
or 82 percent, paid all costs including interest on average valua-
tion of trees and land at 6 percent. The 222 groves averaged
4.5 percent less grapefruit trees, 11 percent more cost incurred
(the principal item being for fertilizer), approximately 25 per-
cent greater yield per acre, as well as receiving $0.05 more per
box for the fruit sold, than all groves in this group. The aver-
age net returns to owners were $91.30 per acre, but varied with
individual groves from $0.76 to $670.72 per acre. The average
yield was 173 boxes per acre as compared with 138 boxes for
all groves in the age group. Yield varied from 39 to 538 boxes
per acre. However, the grove yielding the highest number of
boxes of. fruit per acre did not show the greatest net returns
because a high percent of the fruit produced was grapefruit
.which averaged about one-third the price received for oranges.
Of the 222 groves on which net returns were greater than
costs, the net returns for 62 were below $51.00 per acre; 59
between $51.00 and $100.00; 53 between $101.00 and $200.00;
and 48 groves $201.00 or above per acre.
There were 50 groves in the group over 10 years of age on
which the fruit receipts lacked an average of $14.91 per acre
of paying all costs. The net returns to owners varied from
a minus $167.85 to a minus $0.45 per acre. These groves aver-
aged about 61 percent less fruit per acre; 30 percent less cash
expenses incurred for grove care, the principal item being fer-
tilizer; 14 percent more grapefruit trees; and the average price
received for fruit produced was $0.28 less per box than for the
222 groves on which the fruit receipts exceeded all costs. How-
ever, there were only 14 of the 272 groves over 10 years old
on which the fruit receipts were less than all cash costs incurred
for grove care (if the interest on average valuation of groves
is excluded).






Florida Cooperative Extension


Based upon the average appraised valuation of $545.50 per
acre for groves over 10 years old, this gave a return of 16
percent for interest and owner's supervision which is the high-
est rate earned on bearing groves since the record work began
in the fall of 1930. For the six crop years 1930-31 to 1935-36
inclusive, the return on the average valuation was 7.5 percent.
Price Received for Fruit: The price received for oranges
varied widely during the 1936-37 marketing year principally
because of time of sale. After the California freeze, the price
of oranges in Florida advanced materially, but later in the sea-
son prices declined when the extent of damage in California
was found not to be so great as first estimated. The average
price received per box on the tree for the most common varieties
is shown in Table 17, which includes the average price received
for the six preceding marketing years.
The average price received in 1936-37 for the major varieties
of oranges covered the sale of 34,247 boxes of Parson Brown,
99,180 boxes of Pineapple, and 273,210 boxes of Valencia. King
and Temple oranges sold covered a very small sample which
may not be representative for state prices. "Miscellaneous
Oranges" included varieties of oranges not listed as well as
those sold for a lump sum on the tree irrespective of variety,
amounting to 169,588 boxes.
The average price received for grapefruit was based upon all
varieties and covered the sale of 377,496 boxes.
Tangerine prices covered the sale of 73,997 boxes and averaged
the growers $0.41 per box on the tree, less than one-half the
amount received during the previous season.
The average weighted price per box received for all varieties
and kinds was $1.05, which covered the sale of 1,314,215 boxes,
or approximately 4.3 percent of all fruit marketed outside of
the state during the 1936-37 marketing year.

.4







Florida Citrus Costs and Returns


III. SUMMARY OF COSTS FOR 300 GROVES, 1936-37

This brief summary covers only costs incurred during 1936-
37 and amounts of each of the three principal plant foods ap-
plied. It is hoped that these summaries will enable the coopera-
tors as well as others to compare their items of expenditure
with the average for similar groves, which might suggest profit-
able changes in the operation and management of a grove. All
fruit returns will not be available until the close of the 1937-38
marketing year, after which a more complete analysis of costs
and returns for the 1936-37 crop year will be made.
Location of Groves: The location of groves from which
records were obtained is shown in Table 5. A large number
of groves changed hands during the year and as a result many
grove accounts started were not completed. Numerous requests
have been made from production units that their records be
summarized, but the data have not yet been taken from their
books.
TABLE 5.-DISTRIBUTION OF 300 GROVE COST RECORDS, BY COUNTIES AND
AGE GROUPs, 1936-37*.

Counties I Number of Groves
_5-10 Years 11-43 Years All Groves
Lake ...........................-.......... 10 87 97
Polk ........................................ 2 69 71
Orange ................................... 13 44 57
Highlands .............................. 3 34 37
Pasco ........................................ 7 9 16
Miscellaneous ...........:............ 6 16 22
Total ....................................... 41 259 300
*Preliminary.

Cost of Production: A preliminary summary of costs per acre
for the crop produced during 1936-37, for which all returns are
not yet available, is shown in Table 6. The average costs in-
curred for grove care have been upward each year since 1933-34
on groves over 10 years old. A large percent of the increase in
cost was due to greater quantities of fertilizer used, and prin-
cipally to the use of soil amendments.
Expenses incurred for the cost year 1936-37 for labor, power
and equipment were about the same as for the previous year.
Through the use of more efficient and economical equipment,
i. e., large tank sprayers, three-bottom plows if plowing is part
of the tillage practices, rotary cutters for disposal of cover







Florida Cooperative Extension


crop instead of mowing machines, fertilizer spreaders, rubber
equipped tractors and trailers for transporting machinery to
and from groves, the cost of labor, power and equipment may
be reduced.

TABLE 6.-SUMMARY OF COSTS PER ACRE FOR 300 GROVES, 1936-37*.

Grove Your
Item 5-10 11-43 Grove**
Years Years
Number of groves .................................. 41 259 ........................
Total acres of groves ..................... 1140.26 8138.14 ........................
Average acres per grove ...................... 28 31 ........................
Average age ................... ...................... 8 19 ........................
Number trees per acre .......................... 67 59 ........................
Percent trees grapefruit ........................ 24.8 29.6 ........................
Costs per Acre:
Labor, power and equipment ............ $24.84 $21.99 ..................
Fertilizer and amendments................ 20.57 27.33 ......................
Spray and dust material .................... 3.72 4.64 .......................
Taxes .................................................... 2.19 5.04 ......................
Miscellaneous ................................... ... 1.23 1.78 ......................
Interest on grove valuation @ 6% 26.84 33.05 ......................
Total cost per acre excluding..
owner's supervision ........................ $79.39 $9.83 .......
*Preliminary. Fruit returns not yet available.
**This column is for the specific use of cooperators. Other Interested readers also may
find it useful.

Fertilizer Used by Age of Trees: Fertilizer, as such, may
mean any one or all of the three principal plant foods: namely,
nitrogen, phosphoric acid and potash. The soil amendments
may be considered as fertilizer but only nitrogen, phosphoric
acid and potash were used in calculating the plant food applied.
To make the amounts of fertilizer applied to different groves
comparable, both materials and commercial mixtures applied
were converted into pounds of plant food by the method shown
in Table 7.
The average amount of plant food applied per 100 trees, by
age groups, is shown in Table 8. Since groves usually are fer-
tilized according to number of trees, a unit of 100 trees was
used. This enables one to convert easily to a tree or an acre
basis. For 280 groves on which complete information was
furnished for the 1936-37 season the percent of total fertilizer
cost going into one or more of the soil amendments was much
higher than for any other year since the record work began
in the fall of 1930. These soil amendments consisted of mag-
nesium applied in the form of dolomitic limestone or magnesium






Florida Citrus Costs and Returns


sulfate, copper sulfate, basic slag, rock phosphate, zinc sulfate
used as a spray with some applications to the soil, and other
materials used less extensively.
TABLE 7.-METHOD OF CALCULATING PLANT FOOD APPLIED TO GROVES.
(Actual Record, Season 1936-37)
Number Acres 10 Number Trees 710 Age 19 Years
100 Percent Orange Trees

Month Kind of Fertilizer Pounds in 100 Total Pounds Plant Food
______N IPO.IKO IPounds N I PO. I KLO
November Mixture ....................... 8 6 16 800 64 48 128
November Mixture ...-...... ........... 8 9 16 2,000 160 180 320
December Dolomitic limestone .. 0 0 0 5,800 0 0 0
December Magnesium sulfate .... 0 0 0 85 0 0 0
February .. Nitrate of potash ...... 14 0 14 2,100 294 0 294
February.. Nitrate of soda .......... 16 0 0 1,400 224 0 0
May ......... Nitrate of potash ...... 14 0 14 5,000 700 0 1 700
Total for grove.............................. X X X X 1,442 228 1,442
Total per 100 trees.......................... X X X X 203 32 203
Totalperacre X X X X 144 23 144
Total per acre ................................... X X X X 144 23 144

The average number of pounds of the three principal plant
foods used has not changed materially since 1932-33. However,
the ratio of nitrogen to phosphoric acid and potash has increased
slightly. The yield of fruit per acre and per tree also has been
greater since that time for similar age groves. A study of the
relation of yield to different amounts of the three principal plant
foods revealed that nitrogen influenced yield most. The data
were not complete enough to determine variation in quality of
fruit produced.
Cost of fertilizer for citrus, including soil amendments, has
been steadily increasing by age groups, since 1932-33. The in-
crease in cost has resulted from two causes-increase in prices
of materials and more extensive use of soil amendments. The
effect of increase in price of fertilizer would have been more
pronounced had it not been for many of the large production
units buying materials and mixing their own fertilizer, for
which they charged only the approximate cost of materials
and mixing. Then too, the use of higher analysis of mixed
fertilizers tended to keep the cost less per pound of plant food.
Of the 119 grove records summarized for the crop year 1930-
31, very few growers used any soil amendments, such as calcic
limestone, colloidal phosphate, dolomitic limestone, bluestone,
basic slag, phosphate clay, magnesium sulfate, or .mineral ash
as such, as a means of obtaining some of the less common plant
foods. However, by 1933-34 the use of these materials increased






Florida Cooperative Extension


considerably. Of 259 groves on which complete fertilizer records
were obtained in 1933-34, 56 groves or 21 percent received one
or more of the soil amendments. By 1936-37 there were 171
groves out of a total of 280, or 61 percent, to which at least
one of the soil amendments was applied. Of the 280 complete
grove fertilizer records, 4 had four of these materials, 10 had
three, and 39 had two of these materials applied during the year.
There were 118 groves that received only one material as a
source of one or more of the less common plant foods. The
principal materials used alone were dolomitic limestone and one
or the other of the phosphatic materials. The two materials
used most frequently by the growers were dolomitic limestone
and bluestone. The average cost for materials applied as soil
amendments was $2.60 per acre, for those groves receiving one
or more of the materials.
TABLE 8.-AVERAGE AMOUNT OF PLANT FOOD APPLIED PER 100 TREES BY
AGE GROUPS, 280 GROVES, 1936-37.

Age of Groves Your
Item 5-10 11-14 15-19 20-43 Grove*
Years Years Years Years
Number of groves ......... .34 67 91 88 ................
Total acreage ... .. ..... 1,073.3 3,413.4 2,804 1,689.6 ................
Percent. trees grapefruit ........... 27.6 25.6 38.3 26.8 ...............
Average age .................................. 8 13 17 26 ................
Principal Plant Food Elements Pounds of Plant Food Per 100 Trees
Nitrogen ....................... (N) 107 144 178 209 ..........
Phosphoric acid ........... (POs) 101 123 164 227.....
Potash ............................. (K.O) 167 197 207 298 ..
Average cost per 100 trees ............ $31.14 $39.21 1$47.34 $59.78 ............
*This column is for the specific use of cooperators. Other interested readers also may
find it useful.
Dolomitic limestone is used principally for its calcium and
magnesium content. The magnesium is commonly used to cor-
rect or to prevent bronzing of the citrus leaves. Bluestone or
copper sulfate is frequently used to correct ammoniation of
fruit and die-back of trees. Zinc sulfate is used for the correc-
tion of frenching of citrus leaves. It is most frequently used
as a spray and only nine of the 280 fertilizer records reported
its application to the soil.
It should be noted that these data neither include the so-
called minor elements used in spraying the trees--zinc being
the most common element applied in this way-nor do they
include compounds of these elements applied in commercial fer-
tilizers.






Florida Citrus Costs and Returns


IV. SUMMARY OF COSTS AND RETURNS, CROP YEARS
1930-31 THROUGH 1935-36
The data shown in the remainder of this report are based
upon cost and return records since the record work began in
the fall of 1930. Of the 119 growers who furnished their grove
accounts in the beginning, 53 have cooperated over the entire
six-year period. In addition to these six-year records, 66 com-
plete accounts on the same groves have been summarized for
five years, 64 for four years, 60 for three years, 106 for two
years, and 104 for one of the six years this work has been
fostered. As this work progresses, it is hoped that more in-
formation relative to factors affecting costs and returns will
be revealed than thus far has been shown in this and other
reports.
According to the records, the economies in operating costs
of citrus are: size of grove or units of groves which affects
the purchasing efficiency for equipment and materials; use of
efficient and economical equipment, such as rotary cutter for
disposing of cover crops, large tank sprayers which reduce the
times necessary to recharge the tank; three-bottom plows, if
plowing is a part of tillage practices; use of fertilizer spreaders;
and roadability of tractors and other equipment which saves
the expense of hauling by truck to and from the distant groves.
Any economy or efficiency, assuming that yield and price remain
the same, in these and other grove operations is directly re-
flected in greater net returns.
The factors affecting yield-which has the greatest influence
upon net returns-in order of importance as thus far determined
from the records are: amount of plant food applied including
the less common elements if needed; adequate moisture supplied
through irrigation; efficient insect and disease control; proper
tillage practices; and location of grove as affected by freezes
and drouths.
Costs and Returns for 53 Groves: A summary of costs and
returns per acre and per box on 53 grove records obtained on
the same groves since this project began, is shown in Table 9.
The growers cooperating over this period of time have furnished
their costs for seven years and returns for six of the crops pro-
duced. Not all returns for the seventh crop are yet available.
As indicated in previous reports, these groves varied in size
from 51/2 to 40 acres per grove, with an average of 17.7 acres.
All these groves were over 10 years of age at the beginning of











TABLE 9.-SUMMARY OF COSTS AND. RETURNs Foa 53 FLORIDA CrrRus GROVEs OVER 10 YEARS OF AGE,
CROP YEARS 1930-31 TO 1936-37.

Item Crop Years
_1930-31 1931-32 1932-33 1933-34 1934-35 1935-36 1936-37
Boxes harvested per acre .......................................... 153 169 132 187 194 218
Costs per Acre:
Labor, power and equipment .............................. $33.60 $32.80 $28.03 $28.68 $29.34 $32.46 $31.36
Fertilizer and amendments .................................... 35.97 30.74 24.11 26.36 26.96 28.72 32.92
Spray and dust material ....................................... 4.31 3.84 4.86 4.94 5.82 7.25 8.69
Taxes ....................................................................... 8.48 7.87 7.03 6.69 6.92 5.40 5.31
Miscellaneous ........................................................ 3.83 1.68 1.96 .58 .57 .35 1.03
Interest on grove valuation @ 6% ................. .. 38.40 40.32 39.12 40.44 40.28 41.45 41.84
Total cost per acre excluding owner's supervision $124.59 $117.25 $105.11 $107.69 $109.89 $115.63 $121.15
Total returns per acre ...................................... 139.88 76.95 91.66 117.82 191.54 218.31
Net returns per acre to owner .............................. 15.29 -40.30 -13.45 10.13 81.65 102.68

Total cost per box excluding owner's supervision $ .81 $ .69 $ .79 $ .58 $ .57 $ .53
Average returns per box .................................... .91 .46 .69 .63 .99 1.00
Net returns per box to owner .................................... .10 .23 .10 .05 .42 .47


I






Florida Citrus Costs and Returns


the record project in 1930-31, averaging about 14 years at that
time.
Of the total 939.99 acres in the groves at the beginning,
74 percent were orange trees, 20 percent grapefruit trees, and
6 percent tangerines.
The trend of total costs per acre, excluding owner's super-
vision, was decidedly downward for the first three years (1930-
31 through 1932-33), but slightly upward each year since
1932-33. However, a part of this increase in cost is to be ex-
pected with increase in age as indicated by Table 10. So, the
downward trend in total costs from 1930-31 to 1932-33 is more
pronounced when age is considered. The average cost per acre
excluding owner's supervision for the crop year 1932-33 was
$105.11, and by 1936-37 increased to $121.15. It may be noted
also that total cost per box excluding owner's supervision de-
creased during the latter period from $0.79 to $0.53 per box as
a result of greater yields produced and marketed. A part of
this increased yield may be attributed to better grove care as
reflected in use of more fertilizer and irrigation, which affected
the total costs but apparently paid good dividends for the ex-
penditure.
There has been no definite trend in costs for labor, power and
equipment over the seven years. Most of the fluctuation in cost
was due to expenses incurred for labor to irrigate groves during
drouth periods. If the cost of irrigation including depreciation
on the plant, repairs, gas and oil or electricity to pump the
water, and labor were subtracted from the total cost, it would
be found that there has been a slightly downward trend in cost
for labor, power and equipment since 1930-31. The additional
and increasing cost, which really means increasing use of irri-
gation, has paid good dividends as indicated by greater yields.
However, a part of the increase in yield since 1930-31 has been
due to increasing age.
Spray and dust materials used for insect and disease control
increased each year except for the crop year 1931-32. Some
of this increase in cost for materials has been due to the use
of zinc spray which was not for insect or disease purposes. Often
other materials are used in the spray when zinc is added for
frenching of the leaves, and the cost of the amendments could
not be determined.
The reduction in cost for taxes since 1934-35 below the pre-
vious years is largely due to the Homestead Exemption Law.






Florida Cooperative Extension


Fertilizer reached a low per acre cost of $24.11 in 1932-33,
during which marketing year the average price received for
fruit was the lowest of the six crops marketed. The downward
trend in cost of fertilizer from 1930-31 to 1932-33 was due
largely to more economical practices in buying and applying
more materials as well as some reduction in the cost of mixed
fertilizer, as the actual pounds of plant food applied for the
three principal elements did not vary materially. The increase
in cost each year since 1932-33 resulted from more intensive
use of the soil amendments. However, there was some increase
in cost of certain fertilizer materials and in 1936-37 the average
number of pounds of the three principal plant foods was greater
than for any of the three previous years.
Naturally over a six-year period the average cost per acre
for 53 groves, mostly individually operated by the owners,
would vary considerably according to efficiency in management.
The lowest average cost per acre excluding owner's supervision
for any one of these 53 groves was $59.43 and the highest $169.93
per acre, with an average of $120.80 for the six-year period.
However, the fruit receipts from the grove with the lowest
expenditure for care lacked $2.77 per acre of meeting the costs.
On the other hand, the fruit receipts from the grove that re-
ceived the greatest amount of care as measured by total costs
incurred over the six-year period, showed a net return to its
owner of $112.80 per acre. There were six other groves on
which the net returns were greater but their total cost of pro-
duction was from $21.00 to $78.00 per acre less. This would
tend to indicate that there is a point at which increased costs
for grove care will pay increased dividends but beyond that
point the net returns will tend to decrease. The point at which
a grower may economically increase costs for grove care and
obtain greater returns will depend upon the grove itself, as to
location and type of soil, kind and varieties of fruit, as well as
to the prices of fruit produced. The relationship of costs to
yield per acre for 55 groves over a five-year period is shown
in Figure 2, "Florida Citrus Costs and Returns", Citrus AE6,
issued June, 1937.
For the 53 groves with six-year records, the average yield
of fruit harvested per acre increased from 153 boxes for the
crop produced in 1930-31 to 218 boxes per acre in 1935-36. There
has been an increase in yield each year except for the crop







Florida Citrus Costs and Returns


produced in 1932-33, when approximately 20 percent of the fruit
was destroyed in September of 1933 by a windstorm.
The six-year average of individual grove receipts varied from
$27.34 to $369.55 per acre. Yield per acre, kind and quality
of fruit, and price received were the most important factors
affecting grove receipts. Average grove receipts for these 53
groves over the six-year period amounted to $151.21. The dif-
ference between the six-year average costs and receipts was
$30.41 net returns per acre to owners.
Of the 53 groves, 12 groves had a five-year average yield of
less than 150 boxes per acre; 18 groves between 150 and 200
boxes, and 23 groves from 201 to 427 boxes per acre. Average
cost per acre excluding owner's supervision for these groups
was $87.91, $117.88 and $139.56, respectively. Net returns to
owner averaged $-12.33, $23.63 and $57.85, respectively. Again,
this would indicate that yield was an important, if not the most
important, factor affecting net returns.

TABLE 10.-RELATION OF AGE TO COSTS AND RETURNS, FLORIDA CITRUS
GROVES, AVERAGE FOR CROP YEARS 1930-31 TO 1935-36.

Item 4-10 11-14 15-19 20-42
Years Years Years Years

Total acres of groves ............. 13,299.2 19,621.4 9,157.6 5,156.7
Average acres per grove ........ 43 48 22 16
Average age ....... .............. 8 13 17 26
Percent trees grapefruit ....... 25.7 29.4 42.6 22.8
Boxes harvested per acre ........ 64 100 147 196

Costs per Acre:
Labor, power and equipment $18.39 $19.04 $25.40 $29.13
Fertilizer and amendments 15.11 19.26 28.27 30.34
Spray and dust material .... 2.21 2.97 3.96 4.21
Taxes .................................... 3.75 5.50 6.64 9.58
Miscellaneous ...................... 1.31 1.20 1.16 2.35
Interest on grove valuation
@ 6% ................................ 25.29 30.12 38.11 43.87
Total cost per acre excluding
owner's supervision .......... $66.06 $78.09 $103.54 $119.48
Total returns per acre ......... 56.30 80.93 104.12 168.34
Net returns per acre to owner -9.76 2.84 .58 48.86

Total cost per box excluding
owner's supervision .......... $1.03 $ .78 $ .706 $ .61
Average returns per box ....... .88 .81 .71 .86
Net returns per box to owner .15 .03 .004 .25







20 Florida Cooperative Extension

Relation of Age to Costs and Returns: The costs and returns
by age groups are shown in Table 10. It may be noted for an
average over the six-year period (1930-31 to 1935-36) that until
a grove reaches between 11 and 14 years of age, the owner
fails to realize anything for his supervision. However, the age
at which a grove will show a net return to the owner will depend
upon yield, kind of fruit, price received, and cost of production.
Yield, total costs and returns rose as groves increased in age,
yield and returns proportionately faster than costs on a per
acre basis. This resulted in a decreasing cost of production
from an average of $1.03 for the youngest group to $0.61 per
box for the oldest group of groves.
It should be noted that this relationship of age groups of
groves is based upon the total number of records included in
the study for all six years, and that most groves had two or
more kinds of fruit. The age group of groves between 15 and
19 years consisted of 42.6 percent grapefruit trees; and due
to the relatively low prices received for grapefruit during the
six-year period, this group shows less net returns to the owner
per acre and per box than those groves between 11 and 14 years
old with only 29.4 percent grapefruit trees.

TABLE 11.-RELATION OF AGE TO YIELD HARVESTED PER TREE FOR GRAPE-
FRUIT AND ORANGES, MARKETING YEARS 1930-31 TO 1936-37.

Age Yield Harvested per Tree
_Grapefruit I Oranges
(Boxes) (Boxes).
5 to 8 years .................................. 1.0 .4
8 .................... .... ................. ...... .... 1.7 .6
9 .......................................................... 1.9 .9
10 .................................. ........... 2.0 1.0
11 ........................................................ 2.4 1.1
12 ..................................... .......... 2.6 1.2
13 ...................................... ........... 2.8 1.2
14 ......... ............................ ........... 2.7 1.6
15 ...................................................... 3.3 1.9
16 ................ ....................................... 3.5 2.2
17 ...................................... 3.8 2.2
18 .................................................... 3.7 2.2
19 .................................. .... ....... 3.6 1.9
20 ................................................ 3.6 2.1
21 .................................... ......... 4.5 2.4
22 to 28 years .................................. 5.4 3.0
28 and over ...................................... 5.9 3.8


Relation of Age to Yield: The crop of fruit harvested during
1936-37 was included with the six previous crops to determine






Florida Citrus Costs and Returns


the average yield per tree by ages and rate of increased produc-
tiveness as shown in Table 11. The addition of the crop har-
vested in 1936-37 tended to iron out some of the variation in
the upward trend of yield shown in the previous report, although
the indications still are that yield of grapefruit per tree for
most ages was about double that of oranges.
Assuming other factors being equal, it is quite evident that
age, which is closely associated with size or spread of trees,
influences yield, and that the size or tree spread for any age
is affected most by cultural care.
The sample by ages for grapefruit and orange trees above
21 years of age was not considered adequate to show individual
age yields. As additional years' records are obtained, further
information may be revealed as to the age at which orange and
grapefruit trees cease to increase in production.
Effect of Irrigation Upon Costs, Yields, and Net Returns: In-
adequate moisture in the production of citrus crops has given
a large number of Florida growers great concern. Frequently,
large quantities of young fruit, and mature fruit as well, are
lost because of insufficient moisture at the opportune time. Ac-
cording to the records, lack of adequate moisture is a limiting
factor affecting profitable production of fruit on many groves
located on sandy soils.
Most citrus soils in Florida contain a high percent of fine to
coarse sand. Fortunately, most of the citrus soils are of the
fine sandy type which has greater capillary attraction and ab-
sorption than the coarser types. The chief factors affecting
capillary action are texture, structure, amount of organic mat-
ter and depth to water table in the soil. Most citrus soils in
Florida do not have great capillary power to attract moisture
from the free water below, so the principal water used as the
transporting agency of plant foods must necessarily come from
above through rainfall or surface irrigation. Since most grow-
ers depend upon rainfall for moisture, a seven-year average
precipitation record by months is shown in Figure 2.
It has been said that if the average annual rainfall were
equally distributed throughout the year, it would be adequate
for citrus production in Florida. However, it may be noted that
the average rainfall varies considerably from month to month
and that approximately 55 percent of the rainfall occurs during
the four months of June, July, August and September. The
two periods during which most groves suffer for the lack of






Florida Cooperative Extension


adequate moisture are in the spring months of March, April
and May, and then again in the fall and winter months of
November, December and January. It is during the latter
period that the early and midseason fruit should be matured
and ready to be marketed. Often if there is a drouth period,
it is too soft to harvest and if the drouth continues for a few
weeks considerable fruit is lost by dropping. This also occurs
with the marketing of late varieties of citrus fruit during the
spring months, as well as affecting the bloom and ability of trees
to hold their fruit. From the standpoint of dollars, the loss
of fruit during the November, December and January drouth
period far exceeds that of the March, April and May period
in that it is possible to obtain a June bloom and thereby harvest
good yields if a drouth does not again occur in the following
fall and winter months.

Inches.



S










1 1

2 -

1


Sep'Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Fig. 2.-Average monthly rainfall for 12 Stations in Lake, Polk, Orange,
and Highlands counties, 1930-1937.
(Source: U. S. Department of Agriculture, Weather Bureau.)







Florida Citrus Costs and Returns


Thus, it may be concluded from the uneven monthly distribu-
tion of rainfall and the history of fruit lost during drouth
periods that additional water supplied through irrigation would
be profitable for many growers on sandy soils. The costs, yields,
and net returns to owners for irrigated and non-irrigated groves,
is shown in Table 12.
TABLE 12.-RELATION OF YIELD, COSTS AND RETURNS ON IRRIGATED TO
NON-IRRIGATED GROVES OVER 10 YEARs OLD, CROP YEARS 1931-32 TO 1935-36.

Item Irrigated Non-Irrigated
Groves Groves
Number of grove records .................................. 136 881
Average acres per grove .................................. 37 32
Average age ....................................................... 23 17
Percent trees grapefruit ................................... 16.6 34.7
Boxes harvested per acre .................................. 169 111

Costs per Acre:
Labor, power and equipment ........................ $28.66* $17.96
Fertilizer and amendments ... ....................... 24.77 19.10
Spray and dust material .............................. 4.48 3.09
Taxes .......................................... .. ... 6.19 5.21
Irrigation (Labor, power and equipment).... 5.52
Miscellaneous ...................... ............. ........ 2.64 1.37
Interest on grove valuation @ 6% .............. 36.78 33.64
Total cost per acre excluding
owner's supervision .................................. $109.04 $80.37
Total returns per acre ........................... ........... 158.96 87.02
Net returns per acre to owner ...................... 49.92 6.65

Total cost per box excluding
owner's supervision ......................... ........... .64 $ .73
Average returns per box .................................... .94 .79
Net returns per box to owner ..................... .30 .06

*Excludes labor, power, and equipment for irrigation..

Average age and percent grapefruit trees are not exactly
comparable on irrigated and non-irrigated groves. However,
these differences may be compensated for by using the yield
data by ages for grapefruit and orange trees as shown in Table
11. Assuming that age and percent of grapefruit and orange
trees were approximately the same for non-irrigated groves as
for irrigated groves, they would have shown an average yield
of 127 boxes, or a difference of 42 boxes per acre. For the
irrigated groves, the costs incurred for grove care, other than
for irrigation, were not greater than to be expected for groves
of that age.






Florida Cooperative Extension


The cost of irrigation probably varies more from year to year
than most grove operations because of irregular drouth periods.
Where groves are equipped with an irrigation system, only de-
preciation is charged whether it is used or not during the crop
year. The costs for labor, gas and oil or electricity to pump
water, and repairs naturally vary with the use of the plant.
Of the $5.52 total cost per acre for irrigation, including labor,
power and equipment, approximately 50 percent was for labor,
18 percent for gas and oil or electricity to pump the water, and
32 percent for depreciation on the plant.
Assuming the average age and percent of grapefruit trees
for the non-irrigated groves to be approximately that of the
irrigated groves, the costs would have been about $100. Then
too, assuming that the price received for fruit produced was
about the same for both classes, disregarding any price differ-
ences for quality, the net returns per acre to owners for, the
non-irrigated groves would have been about $19 as compared
to $49.92 to the owners who irrigated, or a difference of ap-
proximately $30. The additional yield of 42 boxes per acre,
which was the result of more nearly adequate moisture require-
ments, was the principal factor influencing the greater net
returns to owners.
Based upon the grove records of those growers who irrigated
regularly during the drouth periods, their yield per acre almost
doubled that of the neighboring growers who did not irrigate
for the five-year period, Their cost for cultivation was less, as
a part of cultivation usually is done to conserve moisture where
possible and to get the fertilizer into moist soil so that the trees
might obtain the plant food when needed. It would be reason-
able to assume that the efficiency of the fertilizer applied on
those groves for which more nearly adequate moisture was sup-
plied during drouth periods was greatly increased and thereby
resulted in greater yields and net returns to owners.
Of all the factors which may be controlled by a grove owner
or operator, affecting net returns through increased yields, irri-
gation may be considered second in importance in the manage-
ment of groves planted on sandy soils.
Cost of Producing Oranges: The average cost of producing
oranges and net returns per acre and per box based upon 244
records of groves over 10 years old are shown in Table 13. The
groves included in this sample were those with not less than








Florida Citrus Costs and Returns


95 percent orange trees, with an average of 98.4 percent orange
trees.
Of the 244 orange grove records, four were furnished on the
same groves for the six-year period; 12 for five years, principally
for 1931-32 to 1935-36 inclusive; seven for four years; 13 for
three years; and 20 for two years, making a total of 191 orange
grove records covering more than one year. The remaining 53
grove records were for one of the six crop years included in
the study.

TABLE 13.--AVERAGE COSTS AND RETURNS FOR 244 ORANGE GROVE RECORDS,
GROVES OVER 10 YEARS OLD, CROP YEARS 1930-31 TO 1935-36.


Item


Total acres of groves .................................................
Average acres per grove .......................................
Average age ................-.................................. ......
Number trees per acre ............................................
Percent trees grapefruit ................................ ......
Boxes harvested per acre ......................................


Costs per Acre:
Labor, power and equipment .................................
Fertilizer and amendments ...................................
Spray and dust material ........................................
Taxes ............................................................................
M miscellaneous ............................ ............................
Interest on grove valuation @ 6% ..................
Total cost per acre excluding owner's supervision

Total returns per acre ........................................
Net returns per acre to owner ..............................


Average Your
Grove*


4,048.9
16
18
62
1.6
145



$ 23.83
26.46
3.63
7.13
2.99
36.65
$100.69

149.63
48.94


Total cost per box excluding owner's supervision $ .69 ......................
Average returns per box ................ ................... ... 1.03 ........................
Net returns per box to owner ...................... ... .34 ........................

*This column is for the specific use of cooperators. Other interested readers also mar
find it useful.

Naturally, the costs per acre varied considerably, depending
upon cultural care and efficiency in operating the different groves.
Even the costs from year to year on the same grove fluctuated
but to a much less extent. Total costs excluding owner's super-
vision on 55 of these groves were below $70 per acre; on 110
between $70 and $100; on 48 between $101 and $130; and on
31 above $130 per acre. In general, the greater the expenses
incurred for grove care the greater were the net returns.


........................
........................
........................
........................
........................

..... ..................

.......................
........................
........................
........................
........................
........................






Florida Cooperative Extension


Net returns per acre for the owner also varied widely and
were closely associated with care given the groves as measured
by costs. There were 161 of the 244 crop year records-or about
two out of every three-for which the net returns to the owner
were greater than total costs.
The average valuation, according to owners or operators of
these orange groves over 10 years of age, was $611 per acre.
Based upon this appraised valuation, the return rate of interest
was 14 percent to the owner over the six-year period.
TABLE 14.-RELATION OF YIELD PER TREE TO COST OF PRODUCING ORANGES
PER BOX, AND OTHER FACTORS, 244 FLORIDA ORANGE GROVE RECORDS,
CROP YEARS 1930-31 TO 1935-36.
I Net
Yield per Tree Number Average Average Cost Returns
(Boxes) of Age Cost per per Acre
Range I Averagel Groves er Box Acre to Owner
Under 1 ............ .5 31 16 $2.05 $62.38 $-6.67
1 1.9 ............... 1.4 62 15 .96 88.90 10.34
2 2.9 ............... 2.4 75 19 .69 103.42 51.50
3 3.9 ............... 3.3 42 17 .61 122.15 65.13
4 and over ....... 5.2 34 25 .41 131.23 174.72


The importance of obtaining good yields of oranges per tree
as affecting cost per box and net returns per acre is shown
in Table 14. As the yield per tree increased by groups the cost
per acre incurred for grove care was greater. However, the
average yield increased from 0.5 box for the lowest yielding
group to 5.2 boxes per tree for the largest yielding group, or
approximately 940 percent, while cost per acre or per tree in-
creased only 110 percent. The large increase in yield as com-
pared to a smaller increase in cost resulted in a decrease in cost
per box from $2.05 to $0.41, which greatly increased net returns
to owners. In other words, by doubling the cost per acre or
per tree, the cost per box was reduced 80 percent. Thus, it
may be concluded that yield per tree, which means a correspond-
ing increase in yield per acre, greatly influenced cost per box
and also net returns per acre.
The increase in cost per acre for the heavier yielding groups
was principally for additional fertilizer, more irrigation during
drouth periods, additional frost protection, as well as insect
and disease control measures.







Florida Citrus Costs and Returns


Relation of Fertilizer Used for Orange Trees to Age: This
study includes the three principal fertilizer ingredients, nitro-
gen, phosphoric acid, and potash, in terms of pounds of plant
food applied as shown in Table 15. The records included in this
study consisted of groves having 95 percent or more orange
trees.
TABLE 15.-AVERAGE AMOUNT OF PLANT FOOD APPLIED PER 100 TREES By
AGE GROUPS, 235 ORANGE GROVE RECORDS, CROP YEARs 1930-31 TO 1935-36.
Age of Groves
Item 11-14 15-19 20 Years
Years Years and Over
Number of groves ................. 106 54 75
Total acres of groves ................. 1,937.4 741 1,156.8
Average boxes harvested per
100 trees .......................... 174 224 303
Percent trees grapefruit ............ 2.1 1.0 1.2
Average age ................................. 12 16 27

Principal Plant Food Elements Pounds of Plant Food Applied
S__per 100 Trees
Nitrogen ............................ (N) 158 142 168
Phosphoric acid .......... (P,Os) 104 172 206
Potash ............................ (K,O) 149 225 271

Average cost per 100 trees ......... $31.20 $47.10 $48.54


It may be noted that with increasing age of trees, the amount
of both phosphoric acid and potash applied was greater than
for nitrogen. However, the largest yields of fruit were pro-
duced by those groves which had more pounds of nitrogeneous
fertilizers applied than the average shown in the two age groups
above 14 years. Since a relatively high percent of phosphoric
acid and potash is generally used on the older groves and con-
sidered to be a large factor in the production of quality fruit,
an attempt was made to measure their economic value. As these
data would not indicate differences in quality, the price received
per box was used in making the comparisons. The price received
for similar varieties averaged only a few cents more per box of
fruit produced by those groves on which greater proportions of
phosphoric acid and potash than nitrogen had been applied. How-
ever, the difference in the receipts from the greater yields per
acre or per tree from those groves applying more nitrogen more
than offset the comparative difference received in price per box.







Florida Cooperative Extension


It should be noted that the average cost per 100 trees, as
shown in Table 15, includes all plant food applied and not just
the three principal constituents listed. There was a relation
between the total cost of fertilizer and amounts of the three
principal plant foods by the age groups. The difference in cost
per 100 trees would have been more pronounced had the cost
of soil amendments been separated. There were greater amounts
of the soil amendments applied as such on the group of groves
between the ages of 15 and 19 years, which naturally affected
the cost of fertilizer and its relation to total cost of the other
age groups.
Cost of Producing Grapefruit: The average cost of produc-
tion and returns for 57 grapefruit grove records is shown in
Table 16. Most Florida citrus groves are mixed with two or
more kinds of fruit. Of all the grove records furnished over
the six-year period 1930-31 to 1935-36, representing 1,400 com-
plete records, only 57 consisted of more than 90 percent grape-
fruit trees. Though the number of grapefruit grove accounts
and total acreage is comparatively small, it is hoped that the
summary will give some idea of costs and returns, as well
as comparative data with orange grove records as shown in
Table 13.
Of the 57 grove accounts, fruit receipts exceeded cost of pro-
duction, excluding owner's supervision, on 15 groves or approx-
imately one out of every four. The fruit from these groves
averaged 16 cents per box more and resulted in a net return
of. 23 cents per box above that for all grapefruit grove records.
Of the 57 grove records, 19 groves produced less than 150
boxes of fruit per acre, 23 between 150 and 275, and 15 above
275 boxes per acre. The costs incurred for grove care also
increased with increased yield but percentagely much less. The
net returns for these three yielding groups were $-0.33, $0.04
and $0.09 per box, respectively.
The largest yield shown for a grapefruit grove was 693 boxes
per acre or 10 boxes per tree, although this grove lacked $476.61
or $34.04 per acre paying all production costs for the year's
operations. This was accounted for principally by the fact that
costs incurred were 18 percent greater than average and the
price received for fruit produced was less than 50 percent of
that received from all grapefruit groves. A large percent of
the fruit was sold as culls which averaged only 14 cents per







Florida Citrus Costs and Returns


box. Nevertheless, yield per acre or per tree is quite important
when price received for fruit produced is about the same.
The average appraised valuation according to owners or opera-
tors of the 57 grapefruit grove accounts was $520 per acre.
Based upon this valuation, grapefruit groves gave a 4 percent
return to owners as compared to a 14 percent return on orange
groves over the same period.

TABLE 16.-AvERAGn COSTS AND RETURNS FOR 57 GRAPEFRUIT GROVE REC-
ORDs, GROVES OVER 10 YEARS OLD, CROP YEARS 1930-31 TO 1935-36.

Item Average Your
Grove*

Total acres of groves ............... ........................... 999.4 .......................
Average acres per grove ...................................... 16 ........................
Average age .................................... ............. 18 ........................
Number trees per acre .......................................... 60 ...................
Percent trees oranges .......................................... 8.9 ........................
Boxes harvested per acre .................................... 216 ........................

Costs per Acre:
Labor, power and equipment .................... $ 29.19 ........................
Fertilizer and amendments ............................ 36.46 ........................
Spray and dust material .................................. 6.42 ......................
Taxes .................................................................. 6.93 ........................
M miscellaneous ...................................................... 1.45 ........................
Interest on grove valuation @ 6% ................. 31.18 ......................
Total cost per acre excluding owner's
supervision ............................... $111.63 ........................
Total returns per acre .......................................... 102.17 ........................
Net returns per acre to owner .......................... -9.46 ........................

Total cost per box excluding owner's
supervision ..................................................... $ .51 .....................
Average returns per box .................................... .47 .......................
Net returns per box to owner ............................ .04 ....................

*This column is for the specific use of cooperators. Other interested readers also may
find it useful.

Average Price Received, by Years and Varieties, for Citrus
Fruits: The average prices received per box on the tree by co-
operators for the most common varieties covering seven market-
ing years, 1930-31 to 1936-37, inclusive, are shown in Table 17.
Oranges sold which were not otherwise classified, minor vari-
eties not listed, and seedlings were classified as "Miscellaneous
Oranges". "Miscellaneous Fruit" includes the citrus fruits not
listed, unclassified fruit sold per box on the tree and that sold
for a lump sum regardless of variety or kind of fruit.







Florida Cooperative Extension


TABLE 17.-AVERAGE PRICES RECEIVED BY YEARS AND MAJOR VARIETIES
FOR FLORIDA, MARKETING YEARS 1930-31 TO 1986-37.

Marketing Years
Varieties 1930- 1931- 1932- 1933- 1934- 1935- 1936-
31 32 33 34 35 36 1 37
Number of groves .................. 119 161 268 264 263 325 326
Price per Box:
Oranges-
Parson Browns ................. $ .88 $ .79 $ .82 $ .63 $ .91 $1.10 $1.07
Pineapples ..................... .76 .99 .72 .64 .87 1.15 1.18
Valencias ......................... 1.49 1.62 .55 1.05 .88 1.34 1.89
Kings ............................ 1.92 1.00 .52 .87 1.34 1.48 1.04
Temples .......................... .38 1.38 .71 .23 .94 1.08 1.17
Miscellaneous ................. .67 1.16 .59 .66 .75 1.17 1.25
Weighted average price
all oranges .................. .88 126 .61 .83 .85 1.23 1.53
Grapefruit ...................... .42 .56 .23 .68 .43 .71 .58
Tangerines ....................... .39 .50 .42 .48 .68 .87 .41
Miscellaneous fruit ........... .66 .75 .71 .68 .42 .92 .86

Weighted average price
all fruit ................... .... $ .68 $ .97 $ .43 $ .76 $ .59 $1.01 $1.05


The average price growers received for all varieties of oranges
for the 1936-37 marketing season exceeded that of any previous
year of the study. Due to the California freeze that affected
the United States supply in 1936-37, the price received for Pine-
apple and Valencia oranges in Florida was greater than other-
wise would have been the case. Increase in purchasing power
of consumers probably was a factor also. A high percentage
of the early oranges in Florida, consisting principally of Parson
Browns, had been marketed before the California freeze and
the average price received for these did not exceed that for
the 1935-36 marketing season.
The price received for tangerines in 1936-37 was the second
lowest during the seven-year period, the lowest being in 1930-31.
Grapefruit averaged more per box in 1936-37 than for four
of the seven years for which data are available. The weighted
average price received for grapefruit for the preceding six years,
1930-31 to 1935-36 inclusive, was $0.48 per box as compared to
$0,58 per box for the 1936-37 marketing season. The weighted
average price for all oranges as well as for all citrus fruits
more than doubled from 1932-33 to 1936-37.







Florida Citrus Costs and Returns


According to the estimated production in all states,* grape-
fruit increased about 14 million boxes or 96 percent, while the
orange production was about the same in 1936-37 as in 1932-33.
However, during this period the demand as measured by the
national income increased about 31 percent.
The price Florida growers receive for their fruit is directly
affected by the total United States production, purchasing power
of consumers, quality of fruit offered for consumption and com-
petition with other fruits.
Based upon boxes sold and amount received for fruit accord-
ing to records furnished by cooperators over the past seven-
year period, 1930-31 to 1936-37 inclusive, the weighted average
price of Valencia oranges was $1.26 per box. These data covered
the sale of 1,130,544 boxes of Valencias. Parson Brown oranges
averaged $0.95 per box, which represented the sale of 124,195
boxes; Pineapple oranges averaged $0.93 per box for the sale
of 449,164 boxes; tangerines averaged $0.55 per box for 280,419
boxes sold; while the weighted average price for all grapefruit
over the seven-year period was $0.50 per box representing the
sale of 1,665,892 boxes.
*Bureau of Agricultural Economics, Division of Crop and Livestock
Estimates.




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