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Permanent Link: http://ufdc.ufl.edu/IR00002039/00001
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Title: Budgeting Costs and Returns for Central Florida Citrus Production, 2004-05
Physical Description: Fact sheet
Creator: Muraro, Ronald P.
Publisher: University of Florida Cooperative Extension Service, Institute of Food and Agriculture Sciences, EDIS
Place of Publication: Gainesville, Fla.
Publication Date: 2005
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Acquisition: Collected for University of Florida's Institutional Repository by the UFIR Self-Submittal tool. Submitted by Melanie Mercer.
Publication Status: Published
General Note: "September 2005"
General Note: Fe629"
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Source Institution: University of Florida Institutional Repository
Holding Location: University of Florida
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System ID: IR00002039:00001


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Ronald P. Muraro EDIS FE629 W. C. Oswalt http://edis.ifas.ufl.edu/FE629 Budgeting Costs and Returns for Central Florida Citrus Production, 2004-05 Institute of Food and Agricultural Sciences Food and Resource Economics Department Florida Agricultural Experiment Station Florida Cooperative Extension Service Gainesville, FL 32611 September 2005

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i ABSTRACT Estimated costs and returns of growing round oranges in the Central Florida citrus area are presented for the twenty-second consecutive year. The Central Florida citrus area refers primarily to Polk and Highlands counties. The format presented may be used by individual growers to budget costs and returns, utilizing individual data on specific groves. Key words: citrus, Central Florida, budgeting, costs and returns. NOTE:The Central Florida production area refers to Polk and Highlands counties. However, the costs presented in this report are applicable to other counties such as Hardee, Hillsborough, Lake and Orange counties. The budgeted cost information presented herein is the most current available. The budget cost items have been revised to reflect current grove practices being used by growerse.g., chemical mowing, different spray materials and rates of fertilization, microsprinkler irrigation, more reset trees, etc. The 2004-2005 budgets reflect major cost increases in all production inputs: fuel averaged a 22% increase; fertilizer products increased 15%; chemicals averaged an 8% increase; and equipment operation costs increased 7%. Along with the increased costs, three major hurricanes (storms) during August and September 2004 resulted in wide tree damage and fruit loss. The Indian River region experienced fruit loss of 70% to 80% on red and white grapefruit, respectively. Hamlin orange losses in the Central Florida (ridge) region were 30% to 40% with Valencia orange losses between 20% and 30%. The only citrus growing region that was not significantly affected by the three storms was the Southwest Florida citrus region. As a result of the excessive fruit loss, the per box, per pound solid and per carton costs for the Indian River and Central (ridge) growing regions were substantially higher than in recent years. The budget costs in this report represent a custom-managed operation Therefore, all equipment costs are based on the average custom rate costs, and a 10 percent handling and supervision charge is added to the material cost. Although the estimated annual per acre grove costs listed are representative for a mature citrus grove (10+ years old), the grove care costs for a specific grove site may differ depending upon the tree age, tree density and the grove practices performed; e.g., spot herbicide for grass/brush regrowth under trees could add an additional $15.34 per acre; Diaprepes control could add $84.18 per acre for each foliar application; extensive tree loss due to blight or tristeza could substantially increase the tree replacement and care costs; spray applications to control citrus leafminer and nematicide applications such as Temik ($131.11/acre) could increase the total cultural costs per acre above the average costs shown in the comparative budgets; travel and set-up costs may vary due to size of the citrus grove and distance from the grove equipment barn and could add $28.86 per acre; etc. ACKNOWLEDGEMENTS Appreciation is extended to Mrs. Jane Wilson for typing the final draft of this manuscript. Appreciation is also extended to the citrus growers and production managers of the Central Florida citrus production area who provided suggestions for the revision of this manuscript.

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ii TABLE OF CONTENTS Page ABSTRACT................................................................... i ACKNOWLEDGEMENTS....................................................... i LIST OF TABLES.............................................................. iii INTRODUCTION.............................................................. 1 METHOD OF DATA COLLECTION.............................................. 1 COSTS AND INPUTS........................................................... 1 THE GROVE SITUATION....................................................... 2 BUDGET COSTS AND RETURNS................................................ 4 HISTORICAL COST TRENDS................................................... 5 REFERENCES................................................................. 10 ADDENDA................................................................... 11 NOTE:The ADDENDA include a Listing of Grove Care Programs for Central Florida Citrus Production for Both Round Oranges and Grapefruit; 2005 custom rate summary report; cost of establishing a citrus grove; etc. Page 11 is a list of the tables included in the ADDENDA.

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iii LIST OF TABLES Table Page 1Schedule of production practices and budget items for a Central Florida citrus grove, 2004-05............................................................... 3 2Calculation of normal production per acre, 2004-05.............................. 4 3Estimated annual per acre costs and returns for a mature, Valencia orange grove producing for the processed market, Central Florida area, 2004-05.................. 6 4Estimated total delivered-in cost for Central Florida (Ridge) Valencia oranges grown for the processed juice market under three cultural cost programs, 2004-05............ 7 5Estimated annual per acre costs and returns and 5-year average costs and returns for a mature, Valencia orange grove producing citrus for processing in the Central Florida area, 2000-012004-05..................................................... 8 6Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2005 dollars) for a mature, Valencia orange grove producing citrus for processing in the Central Florida area, 2000-01-05.......................... 9

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RONALD P. MURARO is a Professor of Food and Resource Economics and Extension Farm Management Economist stationed at the Citrus Research and Education Center, Lake Alfred. W. C. OSWALT is a Multi-county Extension Agent, Citrus in Polk and Hillsborough Counties, Bartow. 1 BUDGETING COSTS AND RETURNS FOR CENTRAL FLORIDA CITRUS PRODUCTION, 2004-05 Ronald P. Muraro and W. C. Oswalt INTRODUCTION Budget analysis provides the basis for many grower decisions. Budget analysis can be used to calculate potential profits from an operation, to determine cash requirements for an operation, and to determine break-even prices. This report presents a budget constructed from current data and serves as a format for growers to analyze costs and returns from their individual records. During the 1980's, several freezes occurred which changed the character of the Central Florida citrus production area. The December 1983 and January 1985 freezes caused extensive tree and acreage losses in north central counties such as Lake and Orange counties. The December 1989 freeze resulted in severe tree damage and tree loss in North and Central Polk County. Thus, Central Florida in this report refers primarily to Polk and Highlands counties. The 2004-2005 budgets reflect major cost increases in all production inputs: fuel averaged a 22% increase; fertilizer products increased 15%; chemicals averaged an 8% increase; and equipment operation costs increased 7%. Along with the increased costs, three major hurricanes (storms) during August and September 2004 resulted in wide tree damage and fruit loss. The Indian River region experienced fruit loss of 70% to 80% on red and white grapefruit, respectively. Hamlin orange losses in the Central Florida (ridge) region were 30% to 40% with Valencia orange losses between 20% and 30%. The only citrus growing region that was not significantly affected by the three storms was the Southwest Florida citrus region. As a result of the excessive fruit loss, the per box, per pound solid and per carton costs for the Indian River and Central (ridge) growing regions were substantially higher than in recent years. METHOD OF DATA COLLECTION The data presented here were developed by surveying custom operators, input suppliers, growers, colleagues at the Citrus Research and Education Center in Lake Alfred, and County Extension Citrus Agents in the Central Florida production region. The survey is conducted annually in February and March.

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2 COSTS AND INPUTS Costs for various production inputs are those collected from citrus growers as well as the average of the data obtained from annual custom rate, chemical, and fertilizer surveys. Growers' costs are shown in the ADDENDA, Tables 1-A through 7-A. The custom rate costs are shown in Table 8-A and the various chemical and fertilizer costs are shown in Table 9-A and 10-A in the ADDENDA. The budget costs represent a custom-managed operation. Therefore, all equipment costs are based upon the average custom-rate costs and a 10 percent handling and supervision charge is added to the material cost. Although brand names are used in many of the tables in the ADDENDA, this does not imply endorsement by the University of Florida. It is merely an attempt to depict typical production practices. All tables have a column reserved for the individual growers to insert data from a particular grove allowing a comparison of the grower's costs with those presented. THE GROVE SITUATION Production practices for a Central Florida round orange grove are shown in Table 1 with times during the year when they would likely be performed. There are two benefits to developing such a table for an individual grove. First, it shows what work is needed and when, so that operations can be planned well in advance. Second, it can be helpful if an annual cash flow analysis is developed to plan financing. The individual grower may benefit from developing a plan for a particular grove. Specific production practices vary from grove to grove making it difficult to define a "typical" grove. Many combinations of practices and various tree variety combinations produce acceptable yields and returns. Although the example represents a Valencia orange grove, the cost and return data are designed to be applicable to most grove situations. A grower, realtor, or land appraiser can substitute individual grove costs and expected returns into the budget format and develop a budget for a particular grove. A "your cost" column is appropriately provided for this purpose in subsequent tables. In the following budget, above average management and cultural practices are assumed. Beyond this general assumption, the following specifics are assumed. 1.A 10+ year-old, low volume-irrigated grove; 2.Variety is Valencia round orange; 3.Tree loss is 3 percent annually; 4.Trees are pulled and replaced when production falls below 50 percent of expected yield; 5.Production is for processed use; 6.Tree density is 112 trees per acre; and 7.Custom-caretaker is providing grove management.

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3 Table 1.--Schedule of production practices and budget items for a Central Florida citrus grove, 2004-05 a Month JanFebMarAprMayJunJulAugSepOctNovDec Total revenue: 20% deposit 50% Partial payment Final payment Less:Pick & haul cost X DOC advertisement tax X Grove expenses: Disc X X Chop Mow X X X Labor, general grove work, pull vines X X Herbicide (1/2 grove acre equivalent) X X Spray:Post bloom/nutritional X Summer oil/greasy spot X Fall miticide X Supplemental miticide Dust Fertilizer 68# N/A 68# N/A 68# N/ADolomite Hedging and topping Hedge Brush removal/chop brush Chop brush Tree removal XX Young tree care XX XX X Microjet irrigation (times/week) 112333222211 Miscellaneous Grove taxes including water management X Interest expense X Annual principal payment on mortgage X This is a suggested schedule of practices. Actual practices would not necessarily be done on the exact schedule shown here. a

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4 As a result of tree losses and replacement, the tree ages will vary. The budget reflects the following age distribution: Situation Yield Boxes/tree 3%pulled and reset 0.0 3%1 year old 0.0 3%2 years old 0.0 3%3 years old 0.7 3%4 years old 0.9 45%5-19 years old 4.0 3%producing 50% of expected yield 2.9 37%mature producing 5.5 Calculation of normal production per acre is shown in Table 2. Note that the proportion-of-treesby-age column only adds to 91 percent since 9 percent of the trees are non-bearing. The impact of the three hurricanes in 2004 is reflected in a 25% reduction in normal yields. Table 2.--Calculation of normal production per acre, 2004-05 Age of Tree Trees Boxes /tree Total boxes Total no. all ages Proportion ea. age a No. ea. age ---------No. ---------3 years 112x0.03=3.4x0.7=2.4 4 years 112x0.03=3.4x0.9=3.1 5-19 years112x0.45=50.4x4.0=201.6 Prod. 50% of exp. yield112x0.03=3.4x2.9=9.9 20 years 112x0.37=41.4x5.5=227.7 Total boxes=444.7 Yields adjusted to 75% of normal yields due to three hurricanes in 2004. 333.5 Proportion adds up to 0.91 (91 percent) as 9 percent of the trees were non-bearing (pulled and a reset, 1 and 2 year old trees). BUDGET COSTS AND RETURNS The estimated budget costs and returns for the Central Florida grove situation are shown in Table 3. The budgeted costs represent one possible citrus production program and were selected from the costs shown in the ADDENDA tables. The gross revenue estimates are based on the projected yields in Table 3 and estimated preliminary on-tree prices for the 2004-05 season. Reset costs, alternative cost scenarios, harvesting and packing charges can be found in Tables 11-A through 14-A in the ADDENDA.

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5 Also, historical on-tree prices for selected Florida citrus varieties are shown in Table 15-A of the ADDENDA. As shown in Table 3, the total revenue for processed-market Valencia oranges is estimated to be $1,425.24 per acre. Total specified costs are $895.43 and are comprised of grove care costs of $847.43, plus management cost of $48.00. Return to land and trees of $529.81 represents net return above variable costs. At 300 and 500 boxes per acre, respectively, the break-even price required to cover grove care costs for Valencia oranges range from $2.83 to $1.70 per box on-tree and $0.81 to $0.64 per pounds solids delivered-in. Ad valorem taxes, and overhead and administrative costs (such as water drainage district taxes, crop insurance, and other grower assessments) can add up to 12 percent to the total grove care costs. These costs vary from grove to grove depending on age, location, variety of fruit, etc. and should be considered in arriving at net return to land, trees and ownership (total return minus total costs). Harvest costs (pick, roadside, and hauling costs) also add to the total fruit cost delivered to either a processing plant or fresh fruit packinghouse. Also, average annual debt payment (principal and interest) may be as high as $440 per acre ($3,750 average debt per acre @ 10 percent interest amortized over 20 years) which would reduce total available cash for grove expansion or other investment. Estimated "delivered-in" costs are shown for processed oranges in Table 4. "Delivered-in" costs include grove care costs (Table 3) plus harvesting, regulatory, and grower assessment costs. The delivered-in cost is presented as a cost per acre, per box, and per pound solids. Three possible budget cost scenarios are presented (Refer to Table 11-A): 1) Low Cost Processed Cultural Program; 2) Reduced Cost Cultural Program; and 3) Typical/Historical Cultural Program. Scenarios 1 and 2 represent costs of two possible cultural programs directed toward reducing the expenditures for fruit grown primarily for the processed market. The third scenario represents typical costs of grove practices which have been performed for citrus grown for the fresh/processed fruit market. Modified herbicide and/or spray and fertilizer programs account for the reduced costs. NOTE: Before modifying a grove management program to reduce costs, an evaluation of the market program (processed or fresh), yield, and specific cultural problems (nutrition, disease, etc.) for the specific grove site should be made. HISTORICAL COST TRENDS Annual costs and returns for mature, processed Valencia oranges in the Central Florida area have been developed and published the past four years. Estimated cost and return histories for 2000-01 through 2003-04 along with 2004-05 and a five-year average are presented in Table 5. To allow comparisons in current values, these same costs and returns, adjusted to 2005 dollars, are presented in Table 6.

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6 Table 3.--Estimated annual per acre costs and returns for a mature, Valencia orange grove producing for the processed market, Central Florida area, 2004-05 a Item Description Amount Your cost ---------------------Dollars ---------------------I.Revenue 333 boxes @ $4.28 1,425.24___________ b II.Expenses c Weed control Discing Mow middles General grove work/sprouting, etc. Herbicide (Table 2-A, Program #1, #2 & #7) Spray program (Table 1-A, Programs #8 & #10) Fertilizer (Table 3-A, Program #3) Dolomite (Table 6-A, Program #2) Pruning (maintenance) Topping Hedging Mow/chop brush Tree replacement and care (Table 12-A) Remove trees/stack/burn Prepare sites and plant resets Supplemental fertilizer, tree wraps, maintenance, sprout, etc. Microsprinkler irrigation (Table 7-A, Program #4) Total grove care expenses 2 times per year 4 times per year (2 labor hours per acre) ($396.50/hr. 10 A/hr.) 2.5 yrs. ($336.25/hr. 10 A/hr.) 2 yrs. ($9.74/A 2 yrs.) (1 through 3 years) 3 trees per acre Including 3 trees per acre Including application 20.16 42.28 26.86 121.10 15.86 16.82 4.87 15.22 34.80 29.79 210.40 146.93 195.21 11.36 37.55 79.81 166.17 847.43 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ III.Management $4.00 per acre per month 48.00___________ d IV.Total specified costs 895.43 e V.Return to land, trees, and ownership 529.81 VI.Break-even price for total grove care expenses Boxes per acre Boxes per acre 300350400450500 300350400450500 $ On-tree price per box $ Delivered-in price per pound solids f 2.832.432.121.891.70 0.810.750.700.670.64 Although the estimated annual per acre grove costs shown in Table 3 are representative for a mature Central Florida Valencia orange grove, the grove care costs for a specific grove site may a differ depending upon the grove practices performed; e.g., a Temik application would add $131.11 per acre; extensive tree loss due to blight or tristeza would double the tree replacement and care costs; travel and set-up costs may vary due to size of citrus grove and distance from the grove equipment barn. On-tree price per box is preliminary; assumes price for processed oranges only. b Assumes material custom applied; therefore, a 10 percent handling and supervision charge is added to material cost. c Other methods to estimate a management cost--e.g., 5% of gross revenue or 10% of total grove care costs--are used in the industry. Other selected methods will give a different return to land d and trees than reported here. Other cost items which are not included in the budget are ad valorem taxes and interest on grove investment. In addition to these cost items, overhead and administrative costs, such as water e drainage/district taxes, crop insurance, and other grower assessments, can add up to 12 percent to the total grove care costs. These costs vary from grove to grove depending on age, location, and time of purchase or grove establishment. Assumes 6.7 pounds solids per box and $2.348 pick and haul cost per box (including canker decontamination costs) and Department of Citrus advertising assessment of $0.165 per box. f

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7 7 Table 4. Estimated total delivered-in cost for Central Florida (Ridge) Valencia oranges grown for the processed market under three cultural cost programs, 2004-05 Represents a mature (10+ years old) Central Florida (Ridge) Orange Grove Processed Valencia Orange Low Cost Cultural Program Processed Valencia Orange Cultural Program Fresh/Processed Valencia Orange Historical Cost Cultural Program $/Acre$/Box$/P.S. $/Acre$/Box $/P.S. $/Acre $/Box $/P.S. Total Production/Cultural Costs $ 756.812.266$0.3382$ 847.43$2.537$0.3787$985.77$2.951$0.4405 Interest on Operating (Cultural) Costs 20.810.0620.009323.300.0700.010427.110.0810.0121 Management Costs 48.000.1440.021448.000.1440.021448.000.1440.0214 Taxes/Regulatory Costs: Property Tax and Water Management Tax61.870.1850.027661.870.1850.027661.870.1850.0276 Canker Decontamination Costs 5.520.0170.0025 5.520.0170.0025 5.520.0170.0025 Total Direct Grower Costs $ 893.01$2.674$0.3991$ 986.12$2.952$0.4407$1,128.26$3.378$0.5042 Interest on Average Capital Investment Costs 321.220.962$0.1435 321.220.9620.1435 321.220.9620.1435 Total Grower Costs $1,214.22$3.635$0.5426$1,307.34$3.914$0.5842$1,449.48$4.340$0.6477 Harvesting and Assessment Costs: Pick/Spot Pick, Roadside & Haul and Canker Decontamination Costs784.232.3480.3504784.232.3480.3504784.232.3480.3504 DOC Assessment 55.110.1650.0246 55.110.1650.0246 55.110.1650.0246 Total Harvesting and Assessment Costs839.342.5130.3751839.342.5130.3751839.342.5130.3751 Total Delivered-In Cost $2,053.57$6.148$0.9177$2,146.68$6.427$0.9593$2,288.82$6.853$1.0228 P.S. = Pound Solids Yield: 333 boxes/acre @ 6.7 P.S. per box 112 trees per acre Refer to cultural program shown in Table 11-A. Only summer oil sprays with oil, copper and Agri-mek & Nutritionals. Refer to cultural program shown in Table 3. Refer to cultural program shown in Table 11-A. A Fall Miticide Spray added to the cultural program shown in Table 3.

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8 Table 5.--Estimated annual per acre costs and returns and 5-year average costs and returns for a mature, Valencia orange grove producing citrus for processing in the Central Florida area, 2000-01-05 Year On-tree price/box Yield a Gross revenue Total grove care expenses Total specified costs f Net return to land, trees, and ownership -----------------------------------------Dollars ------------------------------------2000-01 $3.70436 1,613.20 758.85 806.85 806.35 de 2001-02 $4.17 446 1,859.82 767.77 815.77 1,044.05 2002-03 $3.80 446 1,694.80 777.69 825.59 869.21 2003-04 $3.67 476 1,746.92 774.18 822.18 924.74 c 2004-05 $4.28333 1,425.24 847.43 895.43 529.81 bd 5-yr. avg. $3.93427 1,678.11 785.19 833.19 844.92 On-tree prices for processed oranges only as reported by the Florida Agricultural Statistics Service. a Preliminary estimate at time of printing published by FASS. b Higher per acre yield is due to increased statewide production of Valencia oranges in 2003-04 season. c The severe drought affected yields for the 2000-01 season and three hurricanes reduced yields 25% in 2004-05. d Began using two summer oil sprays (one with nutritionals) in budget estimates. e A management cost of $4.00 per acre per month is included. Fixed costs such as taxes, debt service, and crop insurance are not included. f

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9 Table 6.--Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2005 dollars) for a mature, Valencia orange grove producing citrus for processing in the Central Florida area, 2000-01-05 Year Inflation factor index a Adjusted on-tree price/box Yield Gross revenue Total specified costs b Net return to land, trees, and ownership -----------------------------Dollars ------------------------2000-01 117.9 $4.37 436 1,905.32951.28 954.04 2001-02 120.7 $5.04 446 2,247.84984.64 1,263.20 2002-03 114.6 $4.36 446 1,944.56946.13 998.43 2003-04 107.9 $3.96 476 1,884.96887.14 997.82 2004-05 100.0 $4.28 333 1,425.24895.43 529.81 5-yr. avg. $4.41 427 1,883.07932.93 950.14 Producer price index for each year adjusted to 2005 prices (2005 = 100), with 2005 producer price index estimated to be 158.2. Producer a price index for other years are: 2001 = 134.2; 2002 = 131.1; 2003 = 138.1; and 2004 = 146.7. A management cost of $4.00 per acre per month is included. Fixed costs such as taxes, debt service, and crop insurance are not included. b (Refer to Table 5.)

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10 REFERENCES 1.Preliminary Citrus Summary 2004-05. Florida Agricultural Statistics Service. Florida Agricultural Statistics. 2.Muraro, Ronald P. "A Listing of Estimated Comparative Central Florida (Ridge) Citrus Production Costs Per Acre for 2004-05." Lake Alfred Citrus Research and Education Center (CREC) Report. Lake Alfred, FL: August 2005. 3.______. "Estimated Cost of Planting and Maintaining a Reset Citrus Tree through Three Years of Age." Lake Alfred CREC Report. Lake Alfred, FL: July 2004. 4.______. "A Listing of 2005 Custom Rates Reported by Twenty-Five Ridge Citrus Caretakers." Lake Alfred CREC Report. Lake Alfred, FL: July 2005. 5.Savage, Zach. Citrus Yields Per Tree Age. Univ. of Fla. Agr. Ext. Ser. 60-8. Gainesville: 1960. 6.Timmer, L. W. (Ed.). 2005 Florida Citrus Pest Management Guide. Univ. of Fla. Coop. Ext. Svc. SP 43. Gainesville: Jan. 2005. 150 p. 7.Tucker, D. P. H., A. K. Alva, L. K. Jackson, and T. A. Wheaton (Eds.). Nutrition of Florida Citrus Trees. Univ. of Fla. Coop. Ext. Svc. SP 169. Gainesville: 1995. 61 pp.

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11 ADDENDA:Listing of Grove Care Programs for Central Florida Citrus Production for Both Round Oranges and Grapefruit a Page Table 1-A.Spray programs........................................................ 12 Post bloom spray....................................................... 12 Summer spray.......................................................... 13 Fall spray............................................................. 14 Table 2-A.Herbicide............................................................. 15 Table 3-A.Dry fertilizer........................................................... 16 Table 4-A.Liquid fertilizer (Double boom application).................................. 17 Table 5-A.Nematicides........................................................... 17 Table 6-A.Soil amendment........................................................ 18 Table 7-A.Irrigation--annual cost per acre............................................ 18 Permanent overhead..................................................... 18 Microsprinkler......................................................... 18 Table 8-A.A listing of 2005 custom rates reported by twenty-five Ridge citrus caretakers....... 19 Table 9-A.2005 summary of average chemical price estimates............................ 21 Table 10-A.2005 summary of average fertilizer price estimates............................. 23 Table 11-A.A listing of estimated comparative Central Florida (Ridge) citrus production costs per acre for 2004-05................................................ 25 Table 12-A.Estimated cost of planting and maintaining a reset citrus tree through three years of age, July 2004....................................................... 26 Table 13-A.Estimated average picking, roadsiding and hauling charges for Florida citrus, 2004-05.............................................................. 27 Table 14-A.Estimated average packing charges for Florida citrus, 2004-05................... 28 Table 15-A.Historic prices for selected citrus varieties................................... 29 Table 16-A.Debt which can be supported per $1,000.00 annual payment capacity.............. 30 Abbreviations for important chemicals are: B = BoronFe = Iron Mn = ManganeseZn = Zinc Cu = CopperMg = MagnesiumN = Nitrogen The costs in the ADDENDA represent a custom managed operation. Therefore, all equipment costs a are based upon the average custom rate costs and a 10 percent handling and supervision charge is added to the material cost.

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12 Table 1-A.--Spray programs POST BLOOM SPRAY Spray Program #1Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Oil 97+% Cu (50% metallic) Zn Mn 5 gals 10 lbs 5 lbs 10 lbs $12.30 5.60 4.60 3.60 __________ __________ __________ __________ Ground Application (PTO driven airblast) 125 gals24.15__________ Total per Application $60.25 ------------------------------------------------------------------------------------------------Spray Program #2Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre (Scab/melanose) Cu (50% metallic) Zn Mn Micromite 25WP 10 lbs 5 lbs 10 lbs 1.25 lbs $15.60 4.60 3.60 42.65 __________ __________ __________ __________ Ground Application (PTO driven airblast) 125 gals24.15__________ Total per Application $90.60 ------------------------------------------------------------------------------------------------Spray Program #3Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Agri-Mek 15 lbs 10 ozs $ 23.40 48.60 __________ __________ Ground Application (engine driven airblast) 250 gals30.30__________ Total per Application $102.30 ------------------------------------------------------------------------------------------------Spray Program #4Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Vendex 50WP Zn Mn 2 lbs 5 lbs 10 lbs $32.70 4.60 3.60 __________ __________ __________ Ground Application (PTO driven airblast) 125 gals24.15__________ Total per Application $65.05 -------------------------------------------------------------------------------------------------

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13 Table 1-A.--Spray programs (cont'd.) POST BLOOM SPRAY (cont'd.) Spray Program #5Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre (Scale insects) Lorsban 4EC 5 pts$23.50__________ Ground Application (engine driven airblast) 500 gals32.25__________ Total per Application $55.75 ------------------------------------------------------------------------------------------------SUMMER SPRAY Spray Program #6Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Oil 97+% Cu (50% material) Micromite 5 gals 7 lbs 1.25 lbs $12.30 10.92 42.65 __________ __________ __________ Ground Application (PTO driven airblast) 250 gals30.30__________ Total per Application $96.17 ------------------------------------------------------------------------------------------------Spray Program #7Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Oil 97+% Agri-Mek Cu (50% material) 5 gals 10 ozs 7 lbs $ 12.30 48.60 10.92 __________ __________ __________ Ground Application (engine driven airblast) 250 gals 30.30__________ Total per Application $102.12 ------------------------------------------------------------------------------------------------Spray Program #8Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Oil 97+% Micromite Cu (50% material) 5 gals 1.25 lbs 7 lbs $12.30 42.65 10.92 __________ __________ __________ Ground Application (PTO driven airblast) 125 gals24.15__________ Total per Application $90.02 -------------------------------------------------------------------------------------------------

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14 Table 1-A.--Spray programs (cont'd.) SUMMER SPRAY (cont'd.) Spray Program #9Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Oil 97+% 7 gals$17.22__________ Ground Application (engine driven airblast) 250 gals30.30__________ Total per Application $47.52 ------------------------------------------------------------------------------------------------Spray Program #10Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) 7 lbs$10.92__________ Oil 97+% 5 gals12.30__________ Zn 5 lbs 4.60__________ Mn 10 lbs3.60__________ B 0.25 lbs1.34__________ Ground Application (PTO driven airblast) 125 gals24.15__________ Total per Application $56.91 FALL SPRAY Spray Program #11Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Vendex 50WP 2 lbs$32.70__________ Ground Application (PTO driven airblast) 125 gals24.15__________ Total per Application $56.85 ------------------------------------------------------------------------------------------------Spray Program #12Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Microthiol 15 lbs$11.55__________ Ground Application (PTO driven airblast) 125 gals24.15__________ Total per Application $35.70 -------------------------------------------------------------------------------------------------

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15 Table 2-A.--Herbicide Herbicide Program #1Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Solicam 80 DF Karmex WP Roundup Ultra Max 3 lbs 4 lbs 2 qts $23.51 8.52 8.02 __________ __________ __________ Ground Application (1 time) 14.00__________ Total for 1 Application $54.05 ------------------------------------------------------------------------------------------------Herbicide Program #2Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Mandate Direx 4L Roundup Ultra Max 2 pts 3 qts 2 qts $22.85 6.84 8.02 __________ __________ __________ Ground Application (1 time) 14.00__________ Total for 1 Application $51.71 ------------------------------------------------------------------------------------------------Herbicide Program #3Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Karmex WP Roundup Ultra Max 4 lbs 2 qts $ 8.52 8.02 __________ __________ Ground Application (1 time) 14.00__________ Total for 1 Application $30.54 ------------------------------------------------------------------------------------------------Herbicide Program #4Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Roundup Ultra Max 2 qts$ 8.02__________ Ammonium Sulfate 17 lbs 1.49__________ Ground Application (1 time) 14.00__________ Total for 1 Application $23.51 ------------------------------------------------------------------------------------------------Herbicide Program #5Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Roundup Ultra Max Princep (Caliber 90) 2 qts 4 lbs $ 8.02 7.24 __________ __________ Ground Application (1 time) 14.00__________ Total for 1 Application $29.26 -------------------------------------------------------------------------------------------------

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16 Table 2-A.Herbicide (contd.) Herbicide Program #6Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Direx 4L Solicam Roundup Ultra Max 3 qts 3 lbs 2 qts $ 6.84 23.51 8.02 __________ __________ __________ Ground Application (1 time) 14.00__________ Total for 1 Application $52.37 ------------------------------------------------------------------------------------------------Herbicide Program #7Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Spot herbicide for grass/brush regrowth under trees.) Roundup Ultra Max 2 qts$ 8.02__________ Ground Application (1 time) 15 gals 7.32__________ Total for 1 Application $15.34 With respect to herbicide materials, Amount Per Grove Acre does not equal Amount Per Treated Acre a shown on the label. Only a strip or band is being treated. In this report, it is assumed that only one-half of a grove surface is being treated. Table 3-A.--Dry fertilizer Program #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (162 lbs N/Acre)12-2-12-2.4 MgO 1350 lbs$151.20__________ Application 3 times 26.91__________ Total for 3 Applications $178.11 ------------------------------------------------------------------------------------------------Program #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)16-0-16-4 MgO 1125 lbs$148.50__________ Application 3 times 26.91__________ Total for 3 Applications $175.41 ------------------------------------------------------------------------------------------------Program #3 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (204 lbs N/Acre)16-0-16-4 MgO 1275 lbs$168.30__________ Application 3 times 26.91__________ Total for 3 Applications $195.21 ------------------------------------------------------------------------------------------------Program #4 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (225 lbs N/Acre)15-2-15-2.4 MgO 1500 lbs$187.50__________ Application 3 times 26.91__________ Total for 3 Applications $214.41

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17 Table 4-A.--Liquid fertilizer (Double boom application) Program #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)10-0-10 1800 lbs$167.40__________ Double Boom Application3 times 47.22__________ Total for 3 Applications $214.62 ------------------------------------------------------------------------------------------------Program #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)10-2-10 1800 lbs$176.40__________ Double Boom Application3 times 47.22__________ Total for 3 Applications $223.62 ------------------------------------------------------------------------------------------------Program #3 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)10-0-10 Solicam 80 DF Karmex WP 1800 lbs 3 lbs* 4 lbs* $167.40 23.51 8.52 __________ __________ __________ Double Boom Application3 times 47.22__________ Total for 3 Applications *Treated acre (one herbicide application) $246.65 Table 5-A.--Nematicides Program #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre Temik 15G 33 lbs$116.16__________ Application 14.95__________ Total per Application $131.11 ------------------------------------------------------------------------------------------------Program #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre Temik 15G 17 lbs$59.84__________ Application 14.95__________ Total per Application $74.79 -------------------------------------------------------------------------------------------------

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18 Table 6-A.--Soil amendment Program #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (Every 3 years) Dolomite (Delivered) 1 ton$36.05__________ Application 1 time 9.39__________ Total for 1 Application $45.44 (Average 1/3 Ton Applied/Yr) $15.15 ------------------------------------------------------------------------------------------------Program #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (Every 4 years) Dolomite (Delivered) 1 ton$36.05__________ Application 1 time 9.39__________ Total for 1 Application $45.44 (Average 1/4 Ton Applied/Yr) $11.36 Table 7-A.--Irrigation--annual cost per acre PERMANENT OVERHEAD Program #1 Your Cost/AcreProgram #2 Your Cost/Acre Operating (Electric) $146.69_________ (Diesel) $119.15__________ Maintenance of System 44.98_________ 47.17__________ Total Cash Expenses Fixed Depreciation Expense Total Cash and Fixed Expenses $191.67 55.73 $247.40 _________ _________ $166.33 59.54 $222.06 __________ __________ ------------------------------------------------------------------------------------------------MICROSPRINKLER Program #3 Your Cost/AcreProgram #4 Your Cost/Acre Operating (Electric) $ 70.60*_________ (Diesel) $ 59.44*__________ Maintenance of System 49.08_________ 50.17__________ Total Cash Expenses Fixed Depreciation Expense Total Cash and Fixed Expenses $119.68 52.94 $172.62 _________ _________ $109.61 56.56 $166.17 __________ __________ *Reflects the higher cost of fuel; diesel and electricity.

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19 Table 8-A.--A listing of 2005 custom rates reported by twenty-five Ridge citrus caretakers Grove Practice Unit Range of Rate Reported Average Rate Comments y CULTIVATION AND EQUIPMENT: Labor Hour$10.50-$15.00$13.43Plus transportation Mechanic Labor Hour25.00-45.0035.05Includes truck Rotovate Hour 30.00-45.0036.90 Disc 7' Hour 30.00-40.0033.78 Disc 9'-10' Hour 30.00-40.0033.22 Disc 9'-10' Acre 9.0011.0010.08One-way discing; Disc 7': $8.77/acre Chop Hour 30.00-45.0033.35 Chop Acre 7.50-11.009.41 Mow 5'-7' Hour 31.10-40.0035.27 Mow 9'-12' Hour34.90-40.0035.97 Mow 5'-7' Acre8.00-11.259.95 Mow 9'-12' Acre 8.00-12.7510.57 Mow 15'-16' Acre10.00-12.7511.43 Herbicide (Strip/Band--Single Boom)Hour31.50-35.0033.50Plus materials z Herbicide (Strip/Band--Single Boom)Acre12.00-17.5014.58Plus materials z Herbicide (Strip/Band--Double Boom)Acre12.00-15.5014.00Plus materials; Avg. $40.16/hour z Herbicide (Chemical Mow) Acre 6.00-9.757.63Plus materials z Temik Acre14.00-16.0014.95Plus materials z Plow Hour25.00-35.0031.25 Deviner Hour 42.00 Bush Hog Hour32.50-42.5037.07One reporting $13.00/acre Backhoe Hour42.50-75.0049.50 Pickup Truck with Driver Hour25.00-35.0028.99Average miles/year/pickup: 23,400 Pickup Truck w/out Driver Hour15.00-20.0018.73 Flatbed Transport Truck with DriverHour28.50-50.0036.65Average miles/year: 24,803 Low-Boy Transport Hour50.00-65.0055.00Average miles/year: 30,000 Tractor with Driver Hour27.00-35.0030.42 Water/Supply Truck Hour28.00-40.0032.15 ATV with Driver Hour20.00-26.5024.47 SPRAYING: z PTO AIR BLAST SPRAYER 1,000 Gallon Tank with Electronic Sensing 1,000 Gallon Tank without Electronic Sensing Low HighAverage LowHighAverage 500 GPA Acre 40.00 28.00 36.0032.25 250 GPA Acre29.0035.0031.94 25.00 -35.0030.30 125 GPA Acre27.0033.0028.49 22.50 -27.0024.15 100 GPA Acre24.0025.0024.34 22.50 -25.0022.64 50 GPA Acre 18.50 -22.5020.45 Aerial (Bell-47 Helicopter) $12.00 @ 5 GPA; $16.50 @ 10 GPA; $18.50 @ 15 GPA; $25.00 @ 20 GPA FERTILIZE AND SOIL AMENDMENTS: z Inject Liquid Fertilizer into Irrigation SystemHour$32.50-$50.00$37.36Truck plus labor Inject Liquid Fertilizer into Irrigation SystemAcre1.75-3.502.74Average $66.88/irrigation injection hookup Liquid Boom Application: Double BoomAcre14.75-17.0015.74 Dry (Bulk) Acre 7.00-11.008.97 Lime or Dolomite Acre 8.50-10.759.39 Lime or Dolomite Ton 7.50-9.208.15 Fertilize Young Trees: Hand SpreadHour10.50-15.0013.43Plus transportation and materials z Fert. SpreaderHour30.00-40.0032.50Plus materials; Average $8.28/acre Airblast Spreader with Gator for Resets$30.00/hour; $3.00/acre IRRIGATION: Microsprinkler Avg. $3.47/acre; Avg. $37.50/month Start/stop and supervision Microsprinkler Hour25.00-35.0028.88 Start/stop and supervision; truck and driver ATV with Driver Hour20.00-26.5024.47Check/repair microsprinkler irrigation system-plus materials Ring Young Trees: Hand Labor Hour10.50-15.0013.43Plus transportation Mechanical Hour25.00-27.5026.42Labor and equipment (OVER)

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20 Table 8-A.--A listing of 2005 custom rates reported by twenty-five Ridge citrus caretakers (cont'd.) Grove Practice Unit Range of Rate Reported Average Rate Comments y REMOVING TREES: Tree Shearing (Cutting Tree at Ground Level)Hour$50.00-$70.00$61.25Average trees sheared: 5 to 20 trees/hour Front-end Loader Hour50.00-65.0057.63Average trees removed: 5 to 15 trees/hour Bulldozer Hour 50.00 Front-end Loader with Tree Spade Hour 65.00 PRUNING: Power Saw with Operator Hour$17.00-$27.25$ 21.08Plus transportation; Average $7.00/hour without operator Limb Lifter/Tree Skirt Trimmer (Double Sided)Hour 180.00Cover 8-12 acres one pass Hedging: Double Side (Tractor Pulled) Hour85.00-100.0091.32Cover 3-5 acres/hour Double Side (Tractor Mounted) Hour 280.00 Single Side (Self Propelled) Hour65.00-77.0071.00 Double Side (Self Propelled) Hour330.00-340.00336.25Cover 10-25 acres/hour depending on wood size x Double Side (Self Propelled) Hour190.00-250.00216.67Cover 4-12 acres/hour depending on wood size x Topping: Tractor Pulled Hour 280.00Cover 5-7 acres/hour Tractor Pulled Hour 105.00Cover 1-3 acres/hour Self Propelled Hour375.00-418.00396.50Cover 5-10 acres/hr (Roof Top); 5-20 acres/hr (Flat Top) Self Propelled Hour190.00-250.00230.00 Removing Brush: Haul Brush out of Grove Hour32.50-47.0040.63Tractor-trailer/truck; plus 2 people Front-end Loader (Push Brush) Hour50.30-65.0058.432-10 acres/hour Chop/Mow Brush Hour31.00-47.2536.623-6 acres/hour; Average $11.63/acre COLD PROTECTION: Mechanical (Bank and Unbank) Hour$ $ $ 28.75 Install Wraps Each0.35-0.500.43 Annual Maintenance Costs Tree0.30-0.500.37 OTHER CUSTOM RATES: Plant Resets Per Tree$ 2.00-$ 3.00$ 2.55Stake, plant and first watering Solid Set Planting Per Tree1.50-1.751.55Stake, plant and first watering Travel/Setup Charge Hour 33.33Average for those reporting Grove Management Charge/Month: Supervising Grove Care Operations Acre2.00-6.003.38In addition to caretaking charges; One reporting 6% of Handling Fruit Marketing Box0.10-0.300.17 \equipment labor charge Supervising/Handling Chemicals/Fertilizer15% to 25% of materials cost Charge for personnel to oversee harvesting operations and coordinate harvest in different blocks/groves and keeping of harvesting labor compliance record. 10/box to 20/box; average 14/box Note:One reporting adding a 5% fuel surcharge on all billed equipment charges. Consulting Cultural Management/Horticultural Evaluation $50/hr to $300/hr Financial Analysis Prospectus $100/hr to $300/hr Total Reported Acreage Provided Grove Service to: Acre800-15,6033,445 Total acres reporting: 68,895 Plus materials. Caretakers reporting rates include labor, tractor and sprayer; supply truck included by most caretakers. z Calculated by dividing the total number of caretakers reporting a grove practice rate into the sum reported. Unless otherwise stated, labor included y with all charges. Low acres is for 2 years regrowth hedging; high acres is for annual maintenance hedging. x Source: Ronald P. Muraro, Extension Farm Management Economist, Lake Alfred CREC, July 2005.

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21 Table 9-A.--2005 summary of average chemical price estimates Item Unit Average Price Your Price (2005) Fungicides:Abound EC gal.218.12 Aliette 80WP lb.11.59 Basic Copper Sulfate lb. 1.40 Copper (Kocide 101) lb. 1.80 Copper (Kocide 2000) lb. 2.33 Copper (Champ II Flowable) gal.22.55 Cuprofix Disperss lb. 1.75 Nu-Cop 50 DF lb. 1.88 Enable gal.57.55 Gem 25 40 ozs.120.59 Headline EC gal.206.13 Oil 435 or 455 gal.2.21 Oil 470 (Bio-lever) gal.2.46 Ridomil Gold EC gal.649.15 Safe-T-Oil gal.3.15 Topsin lb.14.08 Insecticides/Nematicides: Admire 2F gal.520.28 Agri-Mek (0.15EC) gal.563.52 Award Fire Ant Bait lb. 9.01 Bio-Vector gal.412.50 Carbaryl 4L gal.27.25 Carbaryl 80S lb. 4.47 Chlorpyrifos 4E gal.57.26 Danitol gal.147.58 Guthion 2L gal.32.48 Guthion 50WP lb.10.07 Imidan 70W (Diaprepes) lb. 8.25 Lorsban 4EC gal.34.15 Lorsban 15G lb. 1.72 Malathion 5 EC gal.25.18 Micromite 80 WG gal.87.95 Microthiol lb. 0.70 Nexter 75WP lb.89.56 Provado 1.6 F (nursery) gal.417.75 Sevin 80S lb. 5.17 Sevin XLR gal.30.96 Spintor 2 S C gal.492.50 Sulphur 6F gal.4.00 Temik 15G lb. 3.20 Vendex 50W lb.14.86 Vydate gal.56.28

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22 Table 9-A.--2005 summary of average chemical price estimates (cont'd.) Item Unit Average Price Your Price (2005) Herbicides:Aqua Master gal. 48.39 Diuron 4L gal. 16.04 Direx 4L gal. 16.50 Direx 80 DF lb. 3.87 Fusilade DX 2E gal.131.14 Glyphosate: Glyphomax Plus gal. 18.22 Roundup (Original) gal. 23.60 Roundup Ultra Max gal. 29.12 Roundup Weather Maxgal. 50.16 Roundup Original Maxgal. 43.50 Touchdown gal. 37.05 Gramoxone E (Paraquat) gal. 37.53 Hyvar X 80 WP lb. 18.93 Karmex 80 DF lb. 3.87 Krovar I lb. 11.38 Landmaster II gal. 18.66 Mandate 2E gal.166.09 Pendimax gal. 24.37 Poast Plus 1.0 EC gal. 52.50 Princep (Caliber 90) lb. 3.29 Princep 4L gal. 14.51 Prowl gal. 22.12 Simazine 90 DF lb. 2.80 Simazine 4L gal. 13.66 Solicam 80 DF lb. 14.24 Simtrol 19.00 Surflan gal. 81.64 Growth Regulators: Citrus Fix gal.494.00 Pro-Gibb 3.91% 20 oz. bottle33.16 Tree-Hold gal. 79.17 Other Spray Materials: Borates (15%) lb. 0.70 Manganese (32%) lb. 0.32 Zinc (78%) lb. 0.83 Adjuvant (Surfactant) gal. 23.59 SOURCE: Ronald P. Muraro, Extension Farm Management Economist, University of Florida, IFAS, CREC, Lake Alfred, Florida, August 2005.

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23 Table 10-A.--2005 summary of average fertilizer price estimates Item Unit Average Price Your Price (2005) FERTILIZER (FOB Price @ Plant) $ Dry Mix (Bulk) Mg 17-0-17-3 ton 238.82_________ Mg 17-4-17-2.4 ton 243.35_________ 16-0-16 ton 218.35_________ Mg 16-0-16-4 ton 239.49_________ Mg 16-2-16-3 ton 240.45_________ Mg 15-2-15-2.4 ton 224.47_________ Mg 12-2-12-2.4 ton 201.02_________ 8-8-8 w/minors* ton 182.90_________ 8-4-8 w/minors* ton 170.29_________ 8-2-8 w/minors* ton 162.12_________ 6-6-6 w/minors* ton 159.99_________ Liquid Mix (Bulk) 8-2-8 ton 151.53_________ 8-4-8 ton 159.73_________ 9-3-9 ton 166.33_________ 9-4-9 ton 172.47_________ 10-0-10 ton 166.62_________ 10-2-10 ton 176.25_________ 12-0-6 ton 166.89_________ 12-3-6 ton 180.25_________ 7-0-0-6 (Magnesium Nitrate) ton 218.00_________ *With organic nitrogen, the price averaged 25% higher.

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24 Table 10-A.--2005 summary of average fertilizer price estimates (cont'd.) Item Unit Average Price Your Price (2005) Other Fertilizer Materials (Bulk) Ammonium Nitrate (21% N Liquid) ton179.88_________ Ammonium Nitrate (33.5% N Dry) ton259.38_________ Ammonium Sulfate (21% N) ton152.94_________ Calcium Nitrate (19% Ca, 15.5% N) ton288.13_________ 33 Dolomite (at mine--49% CaCO, 36% MgCO)ton 19.75_________ 2 Muriate of Potash (60% KO) ton242.29_________ 2 Potassium Nitrate (14% N; 46% KO) ton453.57_________ 2 Sul-Po-Mag (SPM--21.9% KO) ton202.43_________ 25 Super Phosphate (20% PO) ton214.25_________ 25 Triple Superphosphate (48% PO) ton242.92_________ Average Delivery Cost ton14.32_________ Foliar Macronutrients Phos Might 0-22-20 gal.24.29_________ Nutriphite Magnum 2-40-16 gal.35.00_________ MKP (0-52-34) (Mono-Potassium Phosphate)lb.0.80_________ RSA ActaPhos 0-28-25 gal.18.00_________ Peters 20-20-20 Foliar lb.0.54_________ MZF gal.6.53_________ Slow Release Nitrogen (SRN) CitriBlen 15-3-19 ton245.15_________ 17-5-12 ton237.50_________ 18-6-11 ton243.80_________ Sulfur Coated Urea (SCU) ton586.80_________ Agriform 20-10-5 (500 tablets/box) box40.00_________ SOURCE:Ronald P. Muraro, Extension Farm Management Economist, University of Florida, IFAS, CREC, Lake Alfred, Florida, August 2005.

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25 Table 11-A.--A listing of estimated comparative Central Florida (Ridge) citrus production costs per acre for oranges, 2004-2005 z Costs represent a mature (10+ years old) Central Florida (Ridge) Orange Grove. Low Cost Processed Cultural Program One-Year Alternative Processed and Reduced Fresh Cost Cultural Program Typical/Historical Fresh Fruit Cultural Program PRODUCTION/CULTURAL COSTS: y Weed Management/Control: Discing (2 times per year) $ 20.16 $ 20.16 $ 20.16 Mechanical Mow Middles (4 times per year) 42.28 42.28 42.28 General Grove Work (2 labor hours per acre) 26.86 26.86 26.86 Herbicide (1/2 tree acre treated): Application (4 glyphosate or 2 residual applications) $56.00 $28.00 $28.00 Material 32.08 77.76 77.76 Spot Treatment (Material/application) 15.34 15.34 Total Herbicide Cost 88.08 121.10 121.10 Spray: Summer Oil #1 (Processed @ 125 GPA) or Post Bloom (Fresh @ 150 GPA): Application 24.15 24.15 Material 65.87 66.45 Total Summer Oil #1 or Post Bloom Cost 90.02 90.60 Summer Oil #2:Application (PTO 125 GPA) 24.15 24.15 30.30 Material 75.41 32.76 71.82 w Total Summer Oil #2 Cost 99.56 56.91 102.12 Supplemental Fall Miticide: Application (PTO 150 GPA) 24.15 Material 11.55 Total Supplemental Fall Miticide Cost 35.70 Fertilizer (Bulk):3 Applications 26.91 26.91 26.91 Material (16-0-16-4 MgO @ 204 lbs N per acre) 168.30 168.30 168.30 Total Fertilizer Cost 195.21 195.21 195.21 Dolomite (one ton applied every 4 years) Material/Application 11.36 11.36 11.36 Pruning:Topping ($39.65/A 2.5 yrs) 15.86 15.86 15.86 v Hedging ($33.63/A 2 yrs) 16.82 16.82 16.82 v Chop/Mow Brush after Hedging ($9.70/A yrs) 4.87 4.87 4.87 v Total Pruning Cost 37.55 37.55 37.55 Tree Replacement--1 thru 3 years of age: (3 trees/acre) Remove Trees: Pull, Stack & Burn 3 Trees with Front-end Loader 15.22 15.22 15.22 Prepare Site & Plant Tree (Includes 3 reset trees)34.80 34.80 34.80 Supplemental Fertilizer, Tree Wraps Maintenance, Sprout, Etc. (Trees 1-3 years old) 19.56 29.79 29.79 Total Tree Replacement Cost 69.58 79.81 79.81 Irrigation: Microsprinkler System 166.17 166.17 166.17 u IRRIGATED PROCESSED FRUIT PRODUCTION COSTS $756.81 $847.43 Fall Miticide:Application (125 GPA) 24.15 24.15 Material 32.70 32.70 Total Fall Miticide Cost 56.85 56.85 IRRIGATED FRESH FRUIT PRODUCTION COSTS $904.28 $985.77 The listed estimated comparative costs are for the example grove situation described in the Economic Information Report Series entitled: z "Budgeting Costs and Returns for Central Florida Citrus Production" and may not represent your particular grove situation in Central Florida. SOURCE: Ronald P. Muraro, University of Florida-IFAS, Citrus Research and Education Center, Lake Alfred, FL, August 2005.

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26 Table 12-A.--Estimated cost of planting and maintaining a reset citrus tree through three years of age, Central Florida area, August 2005 Resets/Replacement Trees Per Acre 1-23-56-1011-2526+ ----------------$ Cost Per Tree ---------------Tree Removal 6.675.344.453.562.67 Plant Reset Tree Tree Cost (Container Tree) 4.504.504.354.354.35 Plant Tree and First Watering (Custom Charge) 2.93 2.55 2.17 1.84 1.57 Total Planting Costs 7.437.056.526.195.92 Site Preparation a Disk Tree Site 2.652.311.961.671.42 Rotovate 2.652.311.971.671.42 Total Site Preparation 5.304.623.933.342.84 Total Planting and Site Preparation Costs12.7311.6710.459.538.76 ====================================================================== Supplemental MaintenanceYear #14.133.823.593.393.19 (Trees 1-3 years old) Year #2 3.793.392.962.592.27 (Fertilizer, Tree Wraps, Sprout, etc.)Year #3 3.072.732.342.011.73 Total Supplemental Maintenance Costs10.999.948.897.997.19 ====================================================================== Summary of Tree Replacement Costs 13666 Tree Removal Costs 6.675.344.453.562.67 Planting and Site Preparation Costs 12.7311.6710.459.538.76 Supplemental Maintenance Costs (Years 1 thru 3)10.999.948.897.997.19 Total Three-Year Cumulative Costs 30.3926.9523.7921.0818.62 Fumigate planting site would cost approximately $2.50 per tree. a Source: Ronald P. Muraro, Farm Management Economist, CREC, Lake Alfred, FL, August 2005.

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27 Table 13-A.-Estimated average picking, roadsiding and hauling charges for Florida citrus, 2004-05 Fresh Fruit Processed Fruit RangeAverage RangeAverage $/Box$/Box $/Box$/Box Picking Charges: Early and Mid-Season Oranges0.70-1.750.9540.65-1.050.829 Valencia Oranges 0.70-1.250.9380.65-1.250.870 Pink/Red Grapefruit 0.60-1.250.7390.55-1.250.669 White/Marsh Grapefruit 0.60-1.250.7440.55-1.250.667 Temples/Tangelos 0.85-1.651.1630.80-1.501.043 Tangerines 1.25-2.001.5291.00-1.701.204 Add for Spot Picking 0.10-0.500.314 Fresh Fruit Processed Fruit RangeAverage RangeAverage $/Box$/Box $/Box$/Box Roadsiding Charges: Early and Mid-Season Oranges0.60-1.150.8950.65-1.170.817 Valencia Oranges 0.67-1.120.8990.65-1.170.836 Pink/Red Grapefruit 0.65-1.030.8400.65-1.200.796 White/Marsh Grapefruit 0.65-1.030.8540.65-1.200.789 Temples/Tangelos 0.70-1.351.0030.75-1.230.890 Tangerines 0.75-1.351.0950.85-1.701.054 Fresh Fruit Processed Fruit All Varieties All Varieties $/Box $/Box Hauling Charges: 0 30 miles 0.417 0.393 31 50 miles 0.512 0.464 51 80 miles 0.573 0.515 81 100 miles 0.640 0.632 100 + miles 0.746 0.728

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28 Table 14-A.--Estimated Average Packing Charges for Florida Citrus, 2004-05 a Domestic Grapefruit Export Grapefruit Oranges Temples/ Tangelos Tangerines ------------------------$/Carton ------------------------Total Packing Charge 3.8354.2454.1924.4955.056 b --------------------------$/Box --------------------------Drenching Charge 0.1780.1780.1860.1860.186 Packinghouse Elimination Charges 0.5940.5940.5710.5710.571 Hauling Charges for Eliminations 0.4250.4250.4100.4100.410 Packing charges represents a total of nine citrus packinghouses from both the Indian River a and Interior production regions. Total Packing Charge includes the following items: b 1.Materials including mesh/plastic bags, labels/Price Lookup Codes (PLUs), etc. 2.Includes supervisor/foreman labor, grading, palletizing, shipping and general labor. Includes payroll taxes, workers compensation, ground insurance, etc. 3.Other direct packing costs include: fruit treating; power, lights and water; repairs maintenance; miscellaneous supplies; etc. 4.Indirect packing costs include such items as: insurance-fire and casualty; taxes and licenses; depreciation and rent. 5.General and Administrative (G&A) costs include: office personnel (payroll taxes, w/comp); packinghouse and general manager; office supplies; telephone; etc. 6.Selling Expenses which include sales salaries, travel, telephone and telegraph and brokerage fees. 7.Special assessments include such items as: advertising taxes; inspection fees; a Florida Citrus Packers tax; and a Citrus Administrative Committee (CAC) tax. SOURCE:Ronald P. Muraro, University of Florida-IFAS, Citrus Research and Education Center, Lake Alfred, FL, September 2005.

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29 Table 15-A.--Historic prices for selected citrus varieties a Variety Crop year Early and b mid-season c oranges Late season oranges d Temple oranges All TangerinesTangelos Seedless grapefruit e (white)(colored) 1961-62 1962-63 1963-64 1964-65 1965-66 $1.93 2.17 4.43 2.57 1.44 $1.81 3.50 4.45 2.28 1.79 $2.17 3.09 4.45 2.77 1.80 $2.04 3.02 3.18 2.68 2.14 $3.36 4.66 4.83 4.00 2.85 $0.68 1.29 2.24 1.51 1.39 $0.86 1.81 2.54 1.82 1.64 1966-67 1967-68 1968-69 1969-70 1970-71 0.81 1.86 1.56 1.15 1.10 1.08 2.28 1.83 1.13 1.91 0.88 2.79 2.22 1.47 1.91 1.06 4.29 2.55 2.23 1.88 1.64 3.22 2.47 1.13 1.04 0.73 2.05 0.98 1.72 1.89 0.94 2.48 1.15 1.92 2.15 1971-72 1972-73 1973-74 1974-75 1975-76 1.98 1.43 1.38 1.46 1.69 2.11 1.71 1.59 1.82 1.88 1.95 1.95 1.64 1.68 1.79 2.97 2.37 2.82 3.05 3.02 1.69 1.39 1.25 1.45 1.42 2.27 2.06 1.58 1.55 1.29 2.69 2.53 2.12 2.59 2.23 1976-77 1977-78 1978-79 1979-80 1980-81 1.89 3.90 4.44 3.59 3.67 2.63 4.40 4.95 3.89 4.63 2.16 3.92 4.89 2.89 4.21 3.29 4.79 4.99 4.25 5.45 1.42 3.29 3.90 2.87 3.92 1.49 1.47 2.21 3.12 3.46 2.04 2.09 3.13 3.80 4.22 1981-82 1982-83 1983-84 1984-85 1985-86 4.27 4.88 5.09 7.30 3.92 4.29 5.41 6.72 6.88 3.97 4.01 3.99 5.34 5.59 3.01 6.23 7.57 5.93 15.91 12.69 3.58 4.37 4.28 7.08 4.06 1.92 1.51 2.08 3.02 3.56 2.80 3.20 4.05 4.84 4.98 1986-87 1987-88 1988-89 1989-90 1990-91 4.56 6.72 6.63 6.01 5.38 6.02 8.73 8.41 6.53 6.58 3.60 5.69 5.46 5.64 6.31 10.92 12.99 12.64 15.28 17.10 3.72 5.58 6.31 5.10 6.11 4.45 5.35 4.33 5.21 4.59 5.80 5.93 4.71 6.30 6.85 1991-92 1992-93 1993-94 1994-95 1995-96 5.44 3.23 3.76 3.25 3.62 6.65 3.88 4.61 4.41 5.57 6.51 2.99 2.73 3.47 4.44 18.00 13.75 9.83 11.98 12.59 7.16 3.31 2.38 2.64 3.63 6.46 2.22 3.23 2.58 2.14 6.87 3.11 3.38 1.66 1.77 1996-97 1997-98 1998-99 1999-00 2000-01 3.18 2.81 4.35 3.19 2.60 4.07 4.88 5.58 4.33 4.02 3.22 3.07 5.12 2.55 2.05 7.99 8.49 12.07 6.67 6.40 2.19 1.66 4.53 2.52 1.27 1.12 0.93 1.95 3.87 2.07 1.91 1.50 2.65 3.36 2.28 2001-02 2002-03 2003-04 2004-05 f 2.88 2.62 2.20 2.56 4.20 3.85 3.64 4.34 2.19 2.01 1.07 2.48 7.81 8.40 7.46 12.02 2.47 2.60 7.48 2.45 1.96 1.59 1.88 11.95 2.54 2.79 3.28 13.65 On-tree average price per box (1-3/5 bushel box equivalent) for all methods of sale minus pick and haul charges. a Navel and Hamlin Parson Brown and Pineapple Valencia Marsh (white) or pink Preliminary bc d ef Source: Florida Agricultural Statistics Service.

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30 Table 16-A.--Debt which can be supported per $1,000.00 annual payment capacity Loan term (years) Interest rate paid on the loan 8.0%8.5%9.0%9.5%10.0%10.5%11.0%11.5%12.0%12.5%13.0%13.5%14.0%14.5%15.0% 1 2 3 4 5 6 926 1,783 2,577 3,312 3,993 4,623 922 1,771 2,554 3,276 3,941 4,554 917 1,759 2,531 3,240 3,890 4,486 913 1,747 2,509 3,204 3,840 4,420 909 1,754 2,487 3,170 3,791 4,355 905 1,724 2,465 3,136 3,743 4,292 901 1,713 2,444 3,102 3,696 4,230 897 1,701 2,423 3,070 3,650 4,170 893 1,690 2,402 3,037 3,605 4,111 889 1,679 2,381 3,006 3,561 4,054 885 1,668 2,361 2,974 3,517 3,998 881 1,657 2,341 2,944 3,475 3,942 877 1,647 2,322 2,914 3,433 3,889 873 1,636 2,302 2,884 3,392 3,836 870 1,626 2,283 2,855 3,352 3,784 7 8 9 10 11 12 5,206 5,747 6,247 6,710 7,139 7,536 5,119 5,639 6,119 6,561 6,969 7,345 5,033 5,535 5,995 6,418 6,805 7,161 4,950 5,433 5,875 6,279 6,647 6,984 4,868 5,335 5,759 6,145 6,495 6,814 4,789 5,239 5,646 6,015 6,348 6,650 4,712 5,146 5,537 5,889 6,207 6,492 4,640 5,056 5,431 5,768 6,070 6,341 4,564 4,968 5,328 5,650 5,938 6,194 4,492 4,882 5,228 5,536 5,810 6,054 4,423 4,799 5,132 5,426 5,687 5,918 4,355 4,718 5,038 5,319 5,568 5,787 4,288 4,639 4,946 5,216 5,453 5,660 4,224 4,562 4,858 5,116 5,341 5,538 4,160 4,487 4,772 5,019 5,234 5,421 13 14 15 16 17 18 7,904 8,244 8,559 8,851 9,122 9,372 7,691 8,010 8,304 8,576 8,825 9,056 7,487 7,786 8,061 8,313 8,543 8,756 7,291 7,572 7,828 8,062 8,276 8,471 7,103 7,367 7,606 7,824 8,022 8,201 6,923 7,170 7,394 7,596 7,779 7,945 6,750 6,982 7,191 7,379 7,549 7,702 6,583 6,801 6,997 a 7,172 7,329 7,470 6,424 6,628 6,811 6,974 7,119 7,250 6,270 6,462 6,633 6,785 6,920 7,040 6,122 6,302 6,462 6,604 6,729 6,840 5,979 6,149 6,299 6,431 6,547 6,649 5,842 6,002 6,142 6,265 6,373 6,467 5,710 5,861 5,992 6,106 6,207 6,294 5,583 5,724 5,847 5,954 6,048 6,128 19 20 25 30 35 40 9,603 9,818 10,675 11,258 11,655 11,925 9,268 9,463 10,234 10,747 11,088 11,315 8,950 9,129 9,823 10,274 10,567 10,757 8,650 8,812 9,438 9,835 10,087 10,247 8,365 8,514 9,077 9,427 9,644 9,779 8,095 8,231 8,739 9,047 9,234 9,348 7,839 7,963 8,422 8,868 8,855 8,951 7,596 7,710 a 8,123 8,364 8,503 8,587 7,366 7,469 7,843 8,055 8,175 8,244 7,146 7,241 7,579 7,766 7,870 7,928 6,938 7,025 7,330 7,496 7,586 7,634 6,739 6,819 7,095 7,242 7,320 7,361 6,551 6,623 6,873 7,003 7,070 7,105 6,370 6,437 6,663 6,778 6,836 6,866 6,198 6,259 6,464 6,566 6,617 6,642 Example. Assumes a $10,000 after tax income at 11.5% interest rate and a 15-year term mortgage, the total debt which can be supported is $69,970 a ($6,997 x 10). At 11.5% interest rate and a 20-year term mortgage, the total debt which can be supported is $77,100 ($7,710 x 10).