Ronald P. Muraro

Fritz M. Roka

EDIS FE631

http://edis.ifas.ufl.edu/FE631

Robert E. Rouse

Budgeting Costs and Returns

for Southwest Florida Citrus

Production, 2004-05

Up UNIVERSITY of
UF FLORIDA
IFAS Extension

Institute of Food and Agricultural Sciences
Food and Resource Economics Department
Florida Agricultural Experiment Station
Florida Cooperative Extension Service
Gainesville, FL 32611

September 2005

ABSTRACT

Estimated costs and returns of growing processed-market round oranges and fresh-market seedless
grapefruit in the Southwest area of Florida are presented for the tenth consecutive year. The format
presented may be used by individual growers to budget costs and returns, utilizing individual data on
specific groves.

Key words: citrus, budgeting, costs, round oranges, seedless grapefruit and Southwest
Florida.

NOTE: Southwest Florida refers primarily to Charlotte, Collier, Glades, Hendry and Lee counties.
However, the costs shown are applicable to other South Central Florida counties such as
DeSoto, Okeechobee, and Sarasota 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 growers--e.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 an owner-managed operation for the production
of oranges for processing and grapefruit for the fresh market. Therefore, the 10 percent
handling and supervision charge added to the material cost for a custom-managed
operation is not included in the costs.

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 $11.88 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
($116.94/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 Southwest Florida
who provided suggestions for the revision of this manuscript.

ABSTRACT

Estimated costs and returns of growing processed-market round oranges and fresh-market seedless
grapefruit in the Southwest area of Florida are presented for the tenth consecutive year. The format
presented may be used by individual growers to budget costs and returns, utilizing individual data on
specific groves.

Key words: citrus, budgeting, costs, round oranges, seedless grapefruit and Southwest
Florida.

NOTE: Southwest Florida refers primarily to Charlotte, Collier, Glades, Hendry and Lee counties.
However, the costs shown are applicable to other South Central Florida counties such as
DeSoto, Okeechobee, and Sarasota 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 growers--e.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 an owner-managed operation for the production
of oranges for processing and grapefruit for the fresh market. Therefore, the 10 percent
handling and supervision charge added to the material cost for a custom-managed
operation is not included in the costs.

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 $11.88 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
($116.94/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 Southwest Florida
who provided suggestions for the revision of this manuscript.

TABLE OF CONTENTS

Page

ABSTRACT .......... ..................................................... i

ACKNOW LEDGEM ENTS ....................................................... i

LIST OF TABLES ............................................ ......... ....... iii

IN TR O D U C TIO N .................................................... ........ 1

M ETHOD OF DATA COLLECTION ............................................ 1

COSTS AND INPUTS .......................................................... 2

THE GROVE SITUATION ..................................................... 2

BUDGET COSTS AND RETURNS ................................................ 6

HISTORICAL COST TRENDS ................................................... 7

REFERENCES .................................... ................... ........ 17

A D D EN D A ........................................................ ......... 18

NOTE: The ADDENDA include a Listing of Grove Care Programs for Southwest
Florida Citrus Production for Both Round Oranges and Grapefruit; 2005
custom rate summary report; cost of establishing a citrus grove; etc. Page
18 is a list of the tables included in the ADDENDA.

LIST OF TABLES

Table Page

1 Schedule of production practices and budget items for a Southwest Florida mature,
round orange grove, 2004-05 ............................................ 3

2 Schedule of production practices and budget items for a Southwest Florida mature,
red seedless grapefruit grove, 2004-05 ..................................... 4

3 Calculation of normal production per tree and per acre for Hamlin oranges, 2004-05 5

4 Calculation of normal production per tree and per acre for red seedless grapefruit,
2004-05 ............................................................ 6

5 Estimated annual per acre costs and returns for a mature, Hamlin orange grove
producing for the processed market, Southwest Florida area, 2004-05 ............ 8

6 Estimated total delivered-in cost for Southwest Florida Hamlin oranges grown for the
processed juice market under three cultural cost programs, 2004-05 ............. 9

7 Estimated annual per acre costs and returns for a mature, red seedless grapefruit
grove producing for the fresh market, Southwest Florida area, 2004-05 ........... 10

8 Estimated total delivered-in cost for Southwest Florida Red grapefruit under three
cultural cost program s, 2004-05 .......................................... 11

9 Estimated F.O.B. cost for fresh market Southwest Florida Red grapefruit, 2004-05 12

10 Estimated annual per acre costs and returns and 5-year average costs and returns
for a mature, Hamlin orange grove producing citrus for processed market in the
Southwest Florida area, 2000-01-2004-05 ................................. 13

11 Estimated annual per acre costs and returns and 5-year average costs and returns
(adjusted to 2005 dollars) for a mature, Hamlin orange grove producing citrus
for processed market in the Southwest Florida area, 2000-01-2004-05 ........... 14

12 Estimated annual per acre costs and returns and 5-year average costs and returns for
a mature, red seedless grapefruit grove producing citrus for fresh fruit packing in the
Southwest Florida area, 2000-01-2004-05 ................................. 15

13 Estimated annual per acre costs and returns and 5-year average costs and returns
(adjusted to 2005 dollars) for a mature, red seedless grapefruit grove producing
citrus for fresh fruit packing in the Southwest Florida area, 2000-01-2004-05 ..... 16

BUDGETING COSTS AND RETURNS FOR SOUTHWEST
FLORIDA CITRUS PRODUCTION, 2004-05

Ronald P. Muraro, Fritz M. Roka, and Robert E. Rouse

INTRODUCTION

Southwest Florida has become a major citrus production area. In 2004 citrus acreage in Southwest
Florida represented over 22.6% of total state citrus acreage. Acreage in Southwest Florida increased from
72,480 in 1986 to 179,948 in 1998 then decreased to 169,386 in 2004. The 5.9% decline in acreage was
primarily due to trees on sour orange rootstock that died from tristeza virus and acreage destroyed in the

citrus canker eradication program. Southwest Florida refers primarily to Charlotte, Collier, Glades,
Hendry and Lee counties. However, the costs shown are applicable to other South Central Florida
counties such as DeSoto, Okeechobee, and Sarasota counties.

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 two budgets constructed from current data and provides
a format for growers to analyze costs and returns from their individual records.
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,

and colleagues at both the Southwest Florida Research and Education Center and the Citrus Research and
Education Center in Lake Alfred. The survey is conducted annually in February and March.

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. FRITZ M.
ROKA is an Associate Professor in Economics and ROBERT E. ROUSE is an Associate Professor of
Horticulture; both are stationed at the Southwest Florida Research and Education Center, Immokalee.

BUDGETING COSTS AND RETURNS FOR SOUTHWEST
FLORIDA CITRUS PRODUCTION, 2004-05

Ronald P. Muraro, Fritz M. Roka, and Robert E. Rouse

INTRODUCTION

Southwest Florida has become a major citrus production area. In 2004 citrus acreage in Southwest
Florida represented over 22.6% of total state citrus acreage. Acreage in Southwest Florida increased from
72,480 in 1986 to 179,948 in 1998 then decreased to 169,386 in 2004. The 5.9% decline in acreage was
primarily due to trees on sour orange rootstock that died from tristeza virus and acreage destroyed in the

citrus canker eradication program. Southwest Florida refers primarily to Charlotte, Collier, Glades,
Hendry and Lee counties. However, the costs shown are applicable to other South Central Florida
counties such as DeSoto, Okeechobee, and Sarasota counties.

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 two budgets constructed from current data and provides
a format for growers to analyze costs and returns from their individual records.
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,

and colleagues at both the Southwest Florida Research and Education Center and the Citrus Research and
Education Center in Lake Alfred. The survey is conducted annually in February and March.

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. FRITZ M.
ROKA is an Associate Professor in Economics and ROBERT E. ROUSE is an Associate Professor of
Horticulture; both are stationed at the Southwest Florida Research and Education Center, Immokalee.

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. Grower costs are shown

in the ADDENDA, Tables 1-A through 7-A. The custom rate charges are shown in Table 8-A and the
various chemical and fertilizer costs are shown in Tables 9-A and 10-A in the ADDENDA. Costs of

planting and maintaining reset trees through three years of age are shown in Table 13-A. Historic on-tree

prices for selected citrus varieties are shown in 16-A. 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 Southwest Florida orange and grapefruit groves are shown in Tables 1 and

2, respectively, with the times during the year when they are normally 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 examples represent Hamlin orange and red seedless grapefruit groves, 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 mature (10+ years old), low volume irrigated grove;
2. Varieties are processed-market Hamlin oranges and fresh-market red seedless grapefruit;
3. Annual tree loss is 4.4 trees per acre for oranges and 3.6 trees per acre for grapefruit;
4. Trees are pulled and replaced when production falls below 50 percent of expected
yield;
5. Tree density is 145 trees per acre for oranges and 119 trees per acre for grapefruit.
As a result of tree losses and replacement, the tree ages will vary. The orange and grapefruit

budgets reflect the following age distributions:

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. Grower costs are shown

in the ADDENDA, Tables 1-A through 7-A. The custom rate charges are shown in Table 8-A and the
various chemical and fertilizer costs are shown in Tables 9-A and 10-A in the ADDENDA. Costs of

planting and maintaining reset trees through three years of age are shown in Table 13-A. Historic on-tree

prices for selected citrus varieties are shown in 16-A. 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 Southwest Florida orange and grapefruit groves are shown in Tables 1 and

2, respectively, with the times during the year when they are normally 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 examples represent Hamlin orange and red seedless grapefruit groves, 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 mature (10+ years old), low volume irrigated grove;
2. Varieties are processed-market Hamlin oranges and fresh-market red seedless grapefruit;
3. Annual tree loss is 4.4 trees per acre for oranges and 3.6 trees per acre for grapefruit;
4. Trees are pulled and replaced when production falls below 50 percent of expected
yield;
5. Tree density is 145 trees per acre for oranges and 119 trees per acre for grapefruit.
As a result of tree losses and replacement, the tree ages will vary. The orange and grapefruit

budgets reflect the following age distributions:

Table 1.--Schedule of production practices and budget items for a Southwest Florida mature, round orange grove, 2004-05'

Month

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Total revenue:

20%
deposit

Less: Pick & haul cost

DOC advertisement tax

50%
Partial
payment

X

X

Final
payment

Grove expenses:

Mow X X X X X

Labor, general grove work, pull vines X X

Herbicide (1/2 grove acre equivalent) X X X

Spray: Dormant

Post bloom/nutritional X

Supplemental miticide

Summer oil/greasy spot X

Fall miticide X

Fertilizer 68# N/A 68# N/A 68# N/A Dolomite

Hedging and topping Hedge

Brush removal/mow brush Mow brush

Tree removal X

Young tree care X X X X X

Microsprinkler irrigation (times/week) 1 1 2 3 3 3 2 2 2 2 1 1

Miscellaneous (clean ditches) X

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.

Table 2.--Schedule of production practices and budget items for a Southwest Florida mature, red seedless grapefruit grove, 2004-05'

Month

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Total revenue:

20%
deposit

Less: Pick & haul cost

DOC advertisement tax

Final
payment

X

X

Grove expenses:

Disc

Chop

Mow X X X X X

Labor, general grove work, pull vines X X

Herbicide (1/2 grove acre equivalent) X X X

Spray: Dormant

Post bloom/nutritional X

Supplemental miticide X

Summer oil/greasy spot X X

Fall miticide X

Fertilizer 50# N/A 50# N/A 50# N/A Dolomite

Hedging and topping Hedge

Brush removal/mow brush Mow brush

Tree removal X

Young tree care X X X X X

Microsprinkler irrigation (times/week) 1 1 2 3 3 3 2 2 2 2 1 1

Miscellaneous (clean ditches) X

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.

Hamlin Oranges
Yield
Situation 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 1.5

33% 5-15 years old 4.0

3% producing 50% of expected yield 2.2

49% over 15 years old 4.3
and

Red Seedless Grapefruit
Yield
Situation Boxes/tree

3% pulled and reset 0.0

3% 1 year old 0.0

3% 2 years old 0.0

3% 3 years old 0.9

3% 4 years old 1.6

33% 5-15 years old 4.0

3% producing 50% of expected yield 2.9

49% over 15 years old 6.5

Calculation of normal production per acre for Hamlin oranges and red seedless grapefruit are

shown in Tables 3 and 4, respectively.

Table 3.--Calculation of normal production per tree and per acre for Hamlin oranges, 2004-05
Boxes Total
Age of Tree Trees /tree boxes
Total no. Proportion No. ea.
all ages ea. age" age ---------- No. ----------

3 years 145 x 0.03 4.4 x 0.7 3.1
4 years 145 x 0.03 4.4 x 1.5 6.6
5-15 years 145 x 0.33 47.9 x 3.9 186.8
Prod. 50% of
exp. yield 145 x 0.03 4.4 x 2.2 9.7
Over 16 years 145 x 0.49 71.0 x 4.2 298.2

Total boxes = 504.4

"Proportion adds up to 91 percent as 9 percent of the trees were non-bearing (pulled and reset,
1 and 2 year old trees).

Table 4.--Calculation of normal production per tree and per acre for red seedless grapefruit,
2004-05

Boxes Total
Age of Tree Trees /tree boxes
Total no. Proportion No. ea.
all ages ea. age" age ---------- No. ----------

3 years 119 x 0.03 3.6 x 0.9 3.2

4 years 119 x 0.03 3.6 x 1.6 5.8

5-15 years 119 x 0.33 39.3 x 4.0 157.2

Prod. 50% of
exp. yield 119 x 0.03 3.6 x 2.9 10.4

Over 16 years 119 x 0.49 58.3 x 6.5 379.0

Total boxes 555.6

"Proportion adds up to 91 percent as 9 percent of the trees were non-bearing (pulled and reset, 1
and 2 year old trees; see page 5).

BUDGET COSTS AND RETURNS

The estimated budget costs and returns for the two Southwest Florida grove situations are shown
in Tables 5 and 7. The budgeted costs represent one possible citrus production program and were selected

from the costs shown in the ADDENDA tables. The costs presented in the budgets represent an

owner-managed citrus operation. The gross revenue estimates are based on the projected yields in

Tables 3 and 4 and estimated preliminary on-tree prices for the 2004-05 season. Alternative cost

scenarios, grove reset costs, harvesting and packing charges can be found in Tables 11-A through 15-A

in the ADDENDA. Also, historical on-tree prices for selected Florida citrus varieties are shown in Table
16-A of the ADDENDA.

As shown in Table 5, the total revenue for processed-market Hamlin oranges is estimated to be

$1,149.12 per acre. Total specified costs are $881.03 and are comprised of grove care costs of $833.03,

plus management cost of $48.00. Return to land and trees which represents net return above variable

costs was $268.09 per acre. At 350 and 550 boxes per acre, respectively, the break-even price required

to cover grove care costs for Hamlin oranges range from $2.38 to $1.52 per box on-tree and $0.82 to

$0.68 per pounds solids delivered-in.
In Table 7, total revenue for fresh market red seedless grapefruit is estimated to be $7,919.85 per

acre. Total specified costs are $997.74, being comprised of grove care costs of $949.74, plus

management cost of $48.00. Return to land, trees, and ownership or net return above variable costs is

$6,922.11. At 350 and 550 boxes per acre, respectively, the break-even price required to cover grove care

costs for seedless grapefruit range from $2.72 to $1.73 per box on-tree and $1.39 to $1.18 per pound

solids delivered-in for eliminations.

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 of 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 a 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
$435 per acre ($3,700 average debt per acre @ 10 percent interest amortized over 20 years) which would

reduce total available cash for grove expansion or other investment.
An estimated "delivered-in" costs are shown for processed oranges in Table 6 and fresh packed red

grapefruit in Table 8. "Delivered-in" costs include grove care costs (Tables 5 and 7) plus harvesting,
regulatory, and grower assessment costs. The "delivered-in" costs are presented as a cost per acre, per
box, and per pound solids or per carton. Three possible budget cost scenarios are presented (Refer to
Tables 11-A and 12-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 fresh/processed
market. The third scenario represents typical costs of grove practices which have been performed for

citrus grown for the fresh fruit market in the case of grapefruit and the processed market in the case or
oranges. 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. Also, in Table 9, the total estimated F.O.B. cost for fresh packed Red grapefruit is
shown. The F.O.B. costs are presented for "fresh fruit packout percentage rates" ranging from 50 percent
to 100 percent.

HISTORICAL COST TRENDS

Annual budgets of costs and returns for mature, processed Hamlin oranges and mature fresh-market
seedless grapefruit in the Southwest Florida area have been developed and published in each of the past
five years. Estimated cost and return histories for 2000-01 through 2003-04 along with 2004-05, and a
five-year average are presented in Tables 10 and 12. To allow comparisons in current values, these same

costs and returns, adjusted to 2005 dollars, are presented in Tables 11 and 13.

Table 5.--Estimated annual per acre costs and returns for a mature, Hamlin orange grove producing for the processed market, Southwest Florida area, 2004-05'

Item Description Amount Your cost
----- --------- Dollars --- --------
I. Revenue 504 boxes @ $2.28b 1,149.12
II. Expenses
Weed control
Mow middles 3 times per year 22.91
Chemical mow (Table 2-A, Program #10) 2 times per year 9.78
General grove work/sprouting, etc. (2 labor hours per acre) 27.12
Herbicide (Table 2-A, Program #1, #6, & #8) 113.15 172.96
Spray program (Table 1-A, Programs #11 & #13) 141.19
Fertilizer (Table 3-A, Program #4) 159.39
Dolomite (Table 6-A, Program #1) 14.56
Pruning (maintenance)
Topping ($275.00/hr. + 10 A/hr.) + 2.5 yrs. 11.00
Hedging ($257.50/hr. + 10 A/hr.) + 2 yrs. 12.88
Mow brush ($8.99/A + 2 yrs.) 4.50 28.38
Tree replacement and care (Table 12-A) (1 through 3 years)
Remove trees 4 trees per acre 20.32
Prepare sites and plant resets Including 4 trees per acre 47.88
Supplemental fertilizer, sprout, etc. (Trees 1-3 years) Including application 39.72 107.92
Microsprinkler irrigation (Table 7-A, Program #4) 166.17
Drainage ditch annual costs (Table 7-A, Program #5) 42.46
Total grove care expenses 833.03
III. Management $4.00 per acre per month' 48.00
IV. Total specified costs 881.03
V. Return (loss) to land, trees, and ownership 268.09
VI. Break-even price for total grove care expenses
Boxes per acre Boxes per acre
350 400 450 500 550 350 400 450 500 550

$ On-tree price per box $ Delivered-in price per pound solids
2.38 2.09 1.86 1.67 1.52 0.82 0.77 0.73 0.70 0.68

'Although the estimated annual per acre grove costs shown in Tables 5 and 6 are representative for a mature Southwest Florida Hamlin orange and red seedless grapefruit grove, respectively, the grove
care costs for a specific grove site may differ depending upon the grove practices performed; e.g., a Temik application would add $116.94 per acre; extensive tree loss due to blight or tristeza could at
least double, if not increase more, the tree replacement and care costs; etc. Also, truck watering of resets could add another $8.90 per acre (average 5 waterings).
bOn-tree price per box is preliminary; assumes price for processed oranges only.

'Other methods to estimate a management cost--e.g., 5% of gross sales or 10% of total grove care costs--are used in the industry. Other selected methods will give a different return to land and trees
than reported
here.
dOther 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
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 6.0 pounds solids per box and $2.357 pick and haul cost per box (including canker decontamination costs) and Department of Citrus advertising assessment of $0.165 per box.

Table 6.--Estimated total delivered-in cost for Southwest Florida Hamlin oranges grown for the processed market under three cultural cost programs,
2004-05

Represents a mature (10+ years old) Processed Hamlin Oranges Processed Hamlin Oranges Fresh/Processed Hamlin Oranges
Southwest Florida Orange Grove Low Cost Cultural Program Low Cost Historical Cost
One-Year Alternative Cultural Program Cultural Program
$/Acre $/Box $/P.S. $/Acre $/Box $/P.S. $/Acre $/Box $/P.S.

Total Production/Cultural Costs $ 735.99 $1.460 $0.2434 $ 833.03 $1.653 $0.2755 $954.72 $1.894 $0.3157

Interest on Operating (Cultural) Costs 20.24 0.040 0.0067 41.65 0.083 0.0138 47.74 0.095 0.0158

Management Costs 48.00 0.095 0.0159 48.00 0.095 0.0159 48.00 0.095 0.0159

Taxes/Regulatory Costs:
Property Tax and Water Management
District Tax 64.05 0.127 0.0212 61.00 0.121 0.0202 61.00 0.121 0.0202
Canker Decontamination Costs 6.18 0.012 0.0020 4.54 0.009 0.0015 4.54 0.009 0.0015

Total Direct Grower Costs $ 874.46 $1.735 $0.2892 $ 988.22 $1.961 $0.3268 $1,116.00 $2.214 $0.3690

Interest on Avg Capital Investment Costs 321.22 0.637 $0.1062 321.22 0.637 0.1062 321.22 0.637 0.1062

Total Grower Costs $1,195.67 $2.372 $0.3954 $1,309.44 $2.598 $0.4330 $1,437.21 $2.852 $0.4753

Harvesting and Assessment Costs:
Pick/Spot Pick, Roadside & Haul and
Canker Decontamination Costs 1,187.93 2.357 0.3928 1,187.93 2.357 0.3928 1,187.93 2.357 0.3928
DOC Assessment 83.16 0.165 0.0275 83.16 0.165 0.0275 83.16 0.165 0.0275

Total Harvesting & Assessment Costs 1,271.09 2.522 0.4203 1,271.09 2.522 0.4203 1,271.09 2.522 0.4203

Total Delivered-In Cost $2,466.76 $4.894 $0.8157 $2,580.52 $5.120 $0.8533 $2.708.30 $5.374 $0.8956

Refer to cultural program shown
Refer to cultural program shown
P.S. = Pound Solids in Table 11-A. ee lal a n.
in Table 11-A.
Refer to cultural program shown
Yield: 504 boxes/acre @ 6.0 P.S. per box c p so
Only summer oil sprays with oil, in Table 5. A F M S a
A Fall Miticide Spray added to the
145 trees per acre copper, and Agri-mek &
nutrncultural program shown in Table 5.
nutritionals.

Table 7.--Estimated annual per acre costs and returns for a mature, red seedless grapefruit grove producing for the fresh market, Southwest Florida area, 2004-05'

Item Description Amount Your cost
------------ ---- Dollars ----------------
I. Revenue 555 boxes @ $14.27b 7,919.85
II. Expenses
Weed control
Mow middles 3 times per year 22.91
Chemical mow (Table 2-A, Program #10) 2 times per year 9.78
General grove work/sprouting, etc. (2 labor hours per acre) 27.12
Herbicide (Table 2-A, Program #1, #6, & #8) 113.15 172.96
Spray program (Table 1-A, Programs #1, #6, #13, #14, & #16) 307.68
Fertilizer (Table 3-A, Program #2) 129.59
Dolomite (Table 7-A, Program #1) 14.56
Pruning (maintenance)
Topping ($275.00/hr. + 10 A/hr.) 2.5 yrs. 11.00
Hedging ($257.50/hr. + 10 A/hr.) 2 yrs. 12.88
Raise skirts of trees ($14.00/A 2 yrs.) 7.00
Removing/chop brush ($8.99/A + 2 yrs.) 4.50 35.38
Tree replacement and care (Table 12-A) (1 through 3 years)
Remove trees 3 trees per acre 15.24
Prepare sites and plant resets Including 3 trees per acre 35.91
Supplemental fertilizer, etc. (Trees 1-3 years) Including application 29.79 80.94
Microsprinkler irrigation (Table 7-A, Program #4) 166.17
Drainage ditch annual costs (Table 7-A, Program #5) 42.46
Total grove care expenses 949.74
III. Management 48.00
IV. Total specified costs 997.74
V. Return to land, trees, and ownership 6 922.11
VI. Break-even price for total grove care expenses

Boxes per acre Boxes per acre
350 400 450 500 550 350 400 450 500 550

$ On-tree price per box $ Delivered-in price per pound solids for eliminations'
2.72 2.38 2.11 1.90 1.73 1.38 1.32 1.26 1.22 1.18

aAlthough the estimated annual per acre grove costs shown in Tables 5 and 6 are representative for a mature Southwest Florida Hamlin orange and red seedless grapefruit grove, respectively, the grove
care costs for a specific grove site may differ depending upon the grove practices performed; e.g., a Temik application would add $116.94 per acre; extensive tree loss due to blight or tristeza could at
least double, if not increase more, the tree replacement and care costs; etc. Also, truck watering of resets could add another $8.90 per acre (average 5 waterings).
bOn-tree price per box is preliminary; assumes average of all methods of sale (fresh and processed).

'Other methods to estimate a management cost--e.g., 5% of gross sales or 10% of total grove care costs--are used in the industry. Other selected methods will give a different return to land and trees
than reported here.
dOther 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
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 4.7 pounds solids perbox; $2.809 pick and haul cost per box (includes spot picking, fruit drenching and canker decontamination costs and D.O.C. $0.25 advertising tax), $0.55 perbox handling
through packinghouse, and $0.45 per box delivery to processing plant.

Table 8.--Estimated total delivered-in cost for Southwest Florida Red Grapefruit grown for the fresh/processed market under three cultural cost programs,

2004-05

Processed Red Grapefruit Fresh Packed Red Grapefruit Fresh Packed Red Grapefruit
Represents a mature (10+ years old)
est a re Gapru Go Low Cost Cultural Program Reduced Cost Typical/Historical
Southwest Florida Red Grapefruit Grove
One-Year Alternative Cultural Program Cultural Program
$/Acre $/Box $/P.S. $/Acre $/Box $/Carton $/Acre $/Box $/Carton

Total Production/Cultural Costs $701.81 $1.265 $0.2690 $904.94 $1.631 $1.0144 $949.74 $1.711 $1.0144

Interest on Operating (Cultural) Costs 19.30 0.035 0.0074 24.89 0.045 0.0224 26.12 0.047 0.0235

Management Costs 48.00 0.086 0.0184 48.00 0.086 0.0432 48.00 0.086 0.0432

Taxes/Regulatory Costs:
Property Tax and Water Management
District Tax 51.24 0.092 0.0196 51.24 0.092 0.0478 51.24 0.092 0.0478
Fly Protocol Cost 54.73 0.099 0.0477 54.73 0.099 0.0477
Canker Decontamination Costs 6.18 0.011 0.0024 6.18 0.011 0.0016 6.18 0.011 0.0016

Total Taxes/Regulatory Costs 57.42 0.103 0.0220 112.15 0.202 0.0971 112.15 0.202 0.0971

Total Direct Grower Costs $ 826.53 $1.489 $0.3169 $1,089.98 $1.964 $1.1772 $1,136.01 $2.047 $1.1783

Interest on Average Capital Investment Costs 321.22 0.579 0.1231 321.22 0.579 0.2894 321.22 0.579 0.2894

Total Grower Costs $1,147.74 $2.068 $0.4400 $1,411.19 $2.543 $1.4666 $1,457.22 $2.626 $1.4677

Harvesting and Assessment Costs:
Pick/Spot Pick, Roadside & Haul and
Canker Decontamination 1,207.13 2.175 0.4628 1,317.57 2.374 1.1870 1,317.57 2.374 1.1870
Fruit Drenching (Fresh) 102.68 0.185 0.0925 102.68 0.185 0.0925
DOC Assessment 133.20 0.240 0.0511 138.75 0.250 0.1250 138.75 0.250 0.1250

Total Harvesting and Assessment Costs 1,340.33 2.415 0.5138 1,559.00 2.809 1.4045 1,559.00 2.809 1.4045

Total Delivered-in Cost $2,488.07 $4.483 $0.9538 $2,970.19 $5.352 $2.8711 $3,016.22 $5.435 $2.8722

Two cartons per box
Refer to cultural program
Two cartons per box Refer to cultural program Refer to cultural program shown Refer to cultural program shown
shown in Table 12-A.
P.S. = Pound Solids shown Table 12-Ain Table 7. in Table 12-A.

Yield: 555 boxes/acre @ 4.7 P.S. per box
Two summer oil sprays with oil,
Two summer oil sprays with oil, Assumes 100% packout Assumes 100% packout
119 trees per acre copper, and Agri-mek.
119 trees per acre

Table 9.--Estimated F.O.B. cost for fresh market Southwest Florida Red grapefruit, 2004-05

Percent Packout 50.00% Percent Packout 60.00% Percent Packout 70.00%
Box Yield Per Acre 555 Box Yield Per Acre 555 Box Yield Per Acre 555

Per Acre Per Box Per Carton Per Acre Per Box Per Carton Per Acre Per Box Per Carton

Total Production/
Cultural Costs $949.74 $4.268 $2.1342 $949.74 $3.557 $1.7785 $949.74 $3.049 $1.5245

Interest on Operating
(Cultural Costs) 26.12 0.117 0.0587 26.12 0.098 0.0489 26.12 0.084 0.0419

Management 48.00 0.216 0.1079 48.00 0.180 0.0899 48.00 0.154 0.0770

Taxes/Regulatory 112.15 0.504 0.2520 112.15 0.420 0.2100 112.15 0.360 0.1800

Interest on Average
Capital Investment 321.22 1.444 0.7218 321.22 1.203 0.6015 321.22 1.031 0.5156

Harvesting (Pick, Haul, Etc.)
and DOC Assessment 1,559.00 7.007 3.5034 1,559.00 5.839 2.9195 1,559.00 5.005 2.5024

Total Delivered-In Cost $3,016.22 $13.556 $6.7780 $3,016.22 $11.297 $5.6483 $3,016.22 $9.683 $4.8414

Packing & Selling 2,047.95 7.380 3.6900 2,457.54 7.380 3.6900 2,867.13 7.380 3.6900

Net Costs of Fresh
Eliminations" -2,096.24 -9.421 -4.7106 -1,676.99 -6.281 -3.1404 -1,257.74 -4.038 -2.0188

Total F.O.B. Costs $2,967.93 $11515 $57574 $3796.77 $12.396 $6.1979 $4625.61 $13.025 $6.5126

Percent Packout 80.00% Percent Packout 90.00% Percent Packout 100.00%
Box Yield Per Acre 555 Box Yield Per Acre 555 Box Yield Per Acre 555

Per Acre Per Box Per Carton Per Acre Per Box Per Carton Per Acre Per Box Per Carton

Total Production/
Cultural Costs $949.74 $2.668 $1.3339 $949.74 $2.371 $1.1857 $949.74 $2.134 $1.0671

Interest on Operating
(Cultural) Costs 26.12 0.073 0.0367 26.12 0.065 0.0326 26.12 0.059 0.0293

Management 48.00 0.135 0.0674 48.00 0.120 0.0599 48.00 0.108 0.0539

Taxes/Regulatory 112.15 0.315 0.1575 112.15 0.280 0.1400 112.15 0.252 0.1260

Interest on Average
Capital Investment 321.22 0.902 0.4511 321.22 0.802 0.4010 321.22 0.722 0.3609

Harvesting (Pick, Haul, Etc.)
and DOC Assessment 1,559.00 4.379 2.1896 1,559.00 3.893 1.9463 1,559.00 3.503 1.7517

Total Delivered-In Cost $3,016.22 $8.473 $4.2363 $3,016.22 $7.531 $3.7656 $3,016.22 $6.778 $3.3890

Packing & Selling 3,276.72 7.380 3.6900 3,686.31 7.380 3.6900 4,095.90 7.380 3.6900

Net Costs of Fresh
Eliminations" -838.49 -2.355 -1.1777 -419.25 -1.047 -0.5234 0.00 0.000 0.0000

Total F.O.B. Costs $5,454.44 $13497 $6.7486 $6283.28 $13.864 $6.9322 $7112.12 $14.158 $7.0790

""Net Eliminations Cost" equals the average yield of 4.70 pound solids per box times $1.82 per pound solids less packinghouse elimination
charge and cannery hauling charge of $1.00 per box.

Table 10.--Estimated annual per acre costs and returns and 5-year average costs and returns for a mature, Hamlin orange grove producing citrus

for processed market in the Southwest Florida area, 2000-01-2004-05

On-tree Gross Total grove Total specified Net return to land,

Year price/box' Yield revenue care expenses costsC trees, and ownership

-------------------------------------- --- Dollars -------------------------------------

2000-01 $2.57 504 1,295.28 769.04 817.04 478.14

2001-02 $2.79 504 1,406.16 767.23 815.23 590.93

2002-03 $2.65 504 1,335.60 771.03 819.03 516.57

2003-04 $2.11 516 1,088.76 768.21 816.21 272.55

2004-05 $2.28b 504 1,149.12 833.03 881.03 268.09

5-yr. avg. $2.48 506 1,254.88 781.71 830.71 424.17

'On-tree prices for processed oranges only as reported by the Florida Agricultural Statistics Service.

bPreliminary estimate by FASS for 2004-05 season.

CA management cost of $4.00 per acre per month is included. Fixed costs such as taxes, debt service, and crop insurance are not

included.

Table 11.--Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2005 dollars) for a mature, Hamlin
orange grove producing citrus for processed market in the Southwest Florida area, 2000-01-2004-05

Adjusted
Inflation on-tree Gross Total specified Net return to land,
Year factor index" price/box Yield revenue costs trees, and ownership

------------------------------ Dollars -------------------------

2000-01 117.9 $3.03 504 1,527.12 963.29 563.83

2001-02 120.7 $3.37 504 1,698.48 983.99 714.49

2002-03 114.6 $3.04 504 1,532.16 938.61 593.55

2003-04 107.9 $2.28 516 1,176.48 880.69 295.29

2004-05 100.0 $2.28 504 1,149.12 881.03 268.09

5-yr. avg. $2.80 506 1,416.80 929.53 487.27

"Producer price index for each year adjusted to 2005 prices (2005 100), with 2005 producer price index estimated to be 158.2. Producer
price index for other years are: 2001 134.2; 2002 131.1; 2003 138.1; and 2004 146.7.

bA management cost of $4.00 per acre per month is included. Fixed costs such as taxes, debt service, and crop insurance are not included.
(Refer to Table 10.)

Table 12.--Estimated annual per acre costs and returns and 5-year average costs and returns for a mature, red seedless grapefruit grove
producing citrus for fresh market packing in the Southwest Florida area, 2000-01-2004-05

On-tree
Year price/box" Yield

Gross Total grove Total specified Net return to land,
revenue care expenses costsc trees, and ownership

----------- ---------------------- Dollars---- -------------------

2000-01 $2.28 555 1,265.40 864.79 912.79 352.61

2001-02 $2.54 555 1,409.70 874.54 922.54 487.16

2002-03 $2.49 555 1,381.95 871.47 919.47 462.48

2003-04 $4.17 555 2,314.35 874.29 922.29 1,392.06

2004-05 $14.27b 555 7,919.85 949.74 997.74 6,922.11

5-yr. avg. $5.15 555 2,858.25 886.97 934.97 1,923.28

'On-tree prices for all sales methods as reported by the Florida Agricultural Statistics Service.
bPreliminary estimate by FASS for 2004-05 season.

cA management cost of $4.00 per acre per month is included. Fixed costs such as taxes, debt service, and crop insurance are not included.

Table 13.--Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2005 dollars) for a mature, red seedless
grapefruit grove producing citrus for fresh fruit packing in the Southwest Florida area, 2000-01-2004-05

Adjusted
Inflation on-tree Gross Total specified Net return to land,
Year factor index" price/box Yield revenue costs trees, and ownership
------------------------------ Dollars -------------------------

2000-01 117.9 $2.69 555 1,492.95 1,076.18 416.77

2001-02 120.7 $3.07 555 1,703.85 1,113.51 590.34

2002-03 114.6 $2.86 555 1,587.30 1,124.31 462.99

2003-04 107.9 $4.50 555 2,497.50 995.15 1,502.35

2004-05 100.0 $14.27 555 7,919.85 997.74 6,922.11

5-yr. avg. $5.48 555 3,041.40 1,061.38 1,980.02

'Producer price index for each year adjusted to 2005 prices (2005 100), with 2005 producer price index estimated to be 158.2. Producer
price index for other years are: 2001 134.2; 2002 131.1; 2003 138.1; and 2004 146.7.

bA management cost of $4.00 per acre per month is included. Fixed costs such as taxes, debt service, and crop insurance are not included.
(Refer to Table 12.)

REFERENCES

1. Citrus Summary 2003-04. Florida Agricultural Statistics Service. Florida Agricultural
Statistics. January 2005.

2. Muraro, Ronald P. "A Listing of Estimated Comparative Southwest Florida 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: August 2005.

4. ____. "A Listing of 2005 Custom Rates Reported by Sixteen Indian River and South
Florida 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.

18

ADDENDA: Listing of Grove Care Programs for Southwest Florida Citrus Production for Both
Round Oranges and Grapefruit"
Page

Table 1-A Spray program s ..................................... .............. 19
Post bloom spray ........................................ ........ 19
Sum m er spray .................................................... 21
Fall spray ............................................. ......... 22

Table 2-A H erbicide .................................... .................... 22

Table 3-A D ry fertilizer ..................................... ................ 25

Table 4-A. Liquid fertilizer (Double boom application) ............................. 26

Table 5-A N em aticides .................................... .................. 26

Table 6-A Soil am endm ent ..................................... .............. 27

Table 7-A. Irrigation--annual cost per acre ....................................... 27
D rip ........................................ ...... ............ 27
M icrosprinkler ........................................ ......... 27
Drainage ditch annual costs .......................................... 27

Table 8-A. A listing of 2005 custom rates reported by sixteen Indian River and South
Florida citrus caretakers ............................................. 28

Table 9-A. 2005 summary of average chemical price estimates ....................... 30

Table 10-A. 2005 summary of average fertilizer price estimates ....................... 32

Table 11-A. A listing of estimated comparative Southwest Florida citrus production costs per
acre for oranges, 2004-05 ........................................... 34

Table 12-A. A listing of estimated comparative Southwest Florida citrus production costs per
acre for grapefruit, 2004-05 .......................................... 35

Table 13-A. Estimated cost of planting and maintaining a reset citrus tree through three years
of age, August 2005 ..................................... ......... 36

Table 14-A. Estimated average picking, roadsiding and hauling charges for Florida citrus,
2004-05 .............................................. ......... 37

Table 15-A. Estimated average packing charges for Florida citrus, 2004-05 .............. 38

Table 16-A. Historic prices for selected citrus varieties .............................. 39

Table 17-A. Debt which can be supported per $1,000.00 annual payment capacity ......... 40

Abbreviations for important chemicals are:
B Boron Fe Iron Mn Manganese Zn Zinc
Cu Copper Mg Magnesium N Nitrogen

"The costs in the ADDENDA represent an owner managed operation. Therefore, the 10
percent handling and supervision charge added to the material cost for a custom-managed
operation is not included in the costs.

Table 1-A.--Spray programs

POST BLOOM SPRAY

Amount

Spray Program #1 Materials/Ingredients /Acre Cost/Acre

Cu (50% metallic) 15 lbs $21.00
Zn 5 lbs 4.15
Mn 10 lbs 3.20
B 0.25 lb 1.17

Ground Application 125 gals 23.80
(PTO driven airblast)

Total per Application $53.32

Amount
Spray Program #2 Materials/Ingredients /Acre Cost/Acre

Cu (50% metallic) 10 lbs $14.00
Zn 5 lbs 4.15
Mn 10 lbs 3.20
Micromite 25WP 1.25 lbs 38.78

Ground Application 100 gals 24.24
(PTO driven airblast)

Total per Application $83.37

Amount
Spray Program #3 Materials/Ingredients /Acre Cost/Acre

Cu (50% metallic) 7 lbs $ 9.80
Agri-Mek 10 ozs 44.10
Oil 97+% 3 gals 6.63

Ground Application 100 gals 24.24
(PTO driven airblast)

Total per Application $84.77

Amount
Spray Program #4 Materials/Ingredients /Acre Cost/Acre

Cu (50% metallic) 7 lbs $ 9.80
Lorsban 4EC 4 pts 17.08
Hystop (pH Reducer) 1 pt 2.30

Ground Application 100 gals 24.24
(PTO driven airblast)

Total per Application $53.42

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Table 1-A.--Spray programs (cont'd.)

POST BLOOM SPRAY (cont'd.)

Spray Program #5

Spray Prograi

Materials/Ingredients
Vendex 4L
Cu (50% metallic)
Ground Application
(PTO driven airblast)
Total per Application

Amount
/Acre
2 lbs
10 lbs
250 gals

Cost/Acre
$29.72
14.00
27.95

$71.67

Amount
m #6 Materials/Ingredients /Acre Cost/Acre
Micromite 1.25 lbs $38.77
Cu (50% metallic) 7 lbs 9.80
Oil 97+% 3 gals 6.63
Ground Application 250 gals 27.95

(PTO driven airblast)
Total per Application

$83.15

Spray Prograi

Amount
m #7 Materials/Ingredients /Acre Cost/Acre
Cu (50% metallic) 7 lbs $ 9.80
Zn 5 lbs 4.15
Mn 10 lbs 3.20
B 0.25 lb 1.17
Micromite 1.25 lbs 38.78
Ground Application 250 gals 27.95

(PTO driven airblast)
Total per Application

$85.05

Spray Prograr

Spray Prograr
(Scale insect

Amount
n #8 Materials/Ingredients /Acre Cost/Acre
Vendex 4L 2 lbs $29.72
Ground Application 125 gals 23.80

(PTO driven airblast)
Total per Application

$53.52

Amount
n #9 Materials/Ingredients /Acre Cost/Acre
:s) Lorsban 4EC 5 pts $21.35
Ground Application 500 gals 36.60

(engine driven airblast)
Total per Application

$57.95

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Table 1-A.--Spray programs (cont'd.)

SUMMER SPRAY

Spray Prograi

Spray Prograi

Amount
m #10 Materials/Ingredients /Acre Cost/Acre

Oil 97+% 10 gals $22.10
Cu (50% copper) 7 lbs 9.80

Ground Application 250 gals 27.95
(PTO driven airblast)

Total per Application $59.85

Amount
m #11 Materials/Ingredients /Acre Cost/Acre

Cu (50% metallic) 7 lbs $ 9.80
Oil 97+% 5 gals 11.05
Zn 5 lbs 4.15
Mn 10 lbs 3.20
B 0.25 lb 1.17

Ground Application 125 gals 23.80
(PTO driven airblast)

Total per Application $53.17

Spray Program #12

Spray Prograi

Materials/Ingredients

Cu (50% metallic)
Oil 97+%
Agri-Mek

Ground Application
(PTO driven airblast)

Total per Application

Amount
/Acre

7 lbs
5 gals
10 ozs

250 gals

Cost/Acre

$ 9.80
11.05
44.10

27.95

$92.90

Amount
m #13 Materials/Ingredients /Acre Cost/Acre

Enable 8 oz $14.40
Oil 97+% 5 gals 11.05
Micromite 1.25 lbs 38.77

Ground Application 125 gals 23.80
(PTO driven airblast)

Total per Application $88.02

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Table 1-A.--Spray programs (cont'd.)

SUMMER SPRAY (cont'd.)

Spray Program #14

FALL SPRAY

Spray Program #15

Materials/Ingredients
Cu (50% metallic)
Oil 97+%
Ground Application
(PTO driven airblast)
Total per Application

Materials/Ingredients
Agri-Mek
Ground Application
(PTO driven airblast)

Total per Application $45.85

Spray Program #16

Materials/Ingredients
Vendex 4L
Aerial Application
Total per Application

Table 2-A.--Herbicide

Herbicide Program #1
(Strip/band)

Materials
Solicam 80DF
Karmex WP
Roundup Ultra Max
Ground Application
(1 time)

Amount/
Treated Acre
3 lbs
4 lbs
2 qts

Total for 1 Application $45.44

Herbicide Program #2

(Strip/band)

Amount/
Materials Treated Acre

Surflan A80 DF
Simazine 4L
Roundup Ultra Max

Ground Application
(1 time)

Total for 1 Application

2 qts
4 qts
2 qts

"With respect to herbicide materials, Amount Per Grove Acre does not equal Amount Per Treated Acre
shown on the label. Only a strip or band is being treated. In this report, it is assumed that only one-half of a
surface acre is being treated.

Amount
/Acre
7 lbs
5 gals
125 gals

Your
Cost/Acre

Cost/Acre
$ 9.80
11.05
23.80

$44.65

Amount
/Acre
5 ozs
125 gals

Your
Cost/Acre

Cost/Acre
$22.05
23.80

Amount
/Acre
2 lbs
15 GPA

Your
Cost/Acre

Cost/Acre
$29.72
8.82
$38.54

Your Cost/
Grove Acre

Cost/
Grove Acre"
$21.36
7.74
7.28
9.06

Your Cost/
Grove Acre

Cost/
Grove Acre"

$20.42
6.84
7.28

9.06

$43.60

Table 2-A.--Herbicide (cont'd.)

Herbicide Program #3

(Strip/band)

Amount/
Materials Treated Acre

Karmex WP
Roundup Ultra Max

4 lbs
2 qts

Ground Application 9.06
(1 time)

Total for 1 Application $33.14

Herbicide Program #4

(Strip/band)

Materials

Solicam 80DF
Simazine 4L
Roundup Ultra Max

Amount/
Treated Acre

8 lbs
4 qts
2 pts

Ground Application 9.06
(1 time)

Total for 1 Application $82.22

Herbicide Program #5

(Strip/band)

Herbicide Program #6

(Strip/band)

Amount/ Cost/
Materials Treated Acre Grove Acre"

4 qts

Roundup Ultra Max

Ground Application
(1 time)

Total for 1 Application

Amount/
Materials Treated Acre

KrovarI
Roundup Ultra Max

Ground Application
(1 time)

5 lbs
2 qts

$ 7.28

9.06

$16.34

Cost/
Grove Acre"

$28.45
7.28

9.06

Total for 1 Application $44.79

Herbicide Program #7

(Strip/band)

Amount/
Materials Treated Acre

Princep (Caliber 90)
Hyvar X
Adjuvant (Surfactant)

Ground Application
(1 time)

Total for 1 Application

4 lbs
6 lbs
2 pts

Cost/
Grove Acrea

$ 7.74
7.28

Your Cost/
Grove Acre

Your Cost/
Grove Acre

Cost/
Grove Acre"

$62.68
6.84
3.64

Your Cost/
Grove Acre

Your Cost/
Grove Acre

Cost/
Grove Acre"

Your Cost/
Grove Acre

$ 6.58
56.79
3.03

9.06

$75.46

Table 2-A.--Herbicide (cont'd.)

Amount/

Herbicide Pro

(Strip/band)

Cost/

gram #8 Materials Treated Acre Grove Acrea

Roundup Ultra Max 2 qts $ 7.28
Princep (Caliber 90) 4 lbs 6.58

Ground Application 9.06
(1 time)

Total for 1 Application $22.92

Herbicide Program #9

(Strip/band)

Materials

Direx 4L
Solicam
Adjuvant (Surfactant)

Ground Application
(1 time)

Total for 1 Application

Amount/
Treated Acre

3 qts
3 lbs
1 qt

Cost/
Grove Acre"

$ 6.21
21.36
3.04

9.06

Your Cost/
Grove Acre

Your Cost/
Grove Acre

$39.67

Amount/ Cost/

gram #10 Materials Treated Acre Grove Acre"

low) Roundup Ultra 1 pt $1.82

Ground Application 3.07
(1 time)

Total for 1 Application $4.89

Amount/

Herbicide Pro

(Chemical n

Cost/

gram #11 Materials Treated Acre Grove Acre"

now) Roundup Ultra 1.5 pts $2.73

Ground Application 3.07
(1 time)

Total for 1 Application $5.80

Amount/

Herbicide Pro

(Spot treatm

Cost/

gram #12 Materials Treated Acre Grove Acre"

ent) Roundup Ultra 2 qts $ 7.28

Ground Application 4.60
(1 time)

Total for 1 Application $11.88

Herb

(Ch

icide Pro

emical m

Your Cost/
Grove Acre

Your Cost/
Grove Acre

Your Cost/
Grove Acre

Table 3-A.--Dry fertilizer

Analysis/Material

Program #1

(125 lbs N/

Program #2

(150 lbs N/

Program #3

(180 lbs N/

Program #4

(204 lbs N/

Program #5

(225 lbs N/

Amount

Applied /Acre Cost/Acre

cre) 12-2-12-2.4 MgO 1042 lbs $105.25

Application 3 times 16.59

Total for 3 Applications $121.84

Analysis/Material

Amount

Applied /Acre Cost/Acre

cre) 15-2-15-2.4 MgO 1000 lbs $113.00

Application 3 times 16.59

Total for 3 Applications $129.59

Analysis/Material Amount
Applied /Acre Cost/Acre

cre) 15-2-15-2.4 MgO 1200 lbs $135.60

Application 3 times 16.59

Total for 3 Applications $152.19

Analysis/Material Amount
Applied /Acre Cost/Acre

cre) 17-4-17-2.4 MgO 1200 lbs $142.80

Application 3 times 16.59

Total for 3 Applications $159.39

Analysis/Material Amount
Applied /Acre Cost/Acre

cre) 15-2-15-2.4 MgO 1500 lbs $169.50

Application 3 times 16.59

Total for 3 Applications $186.09

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

>1

Table 4-A.--Liquid fertilizer (Double boom application)

Analysis/Material Amount
Program #1 Applied /Acre Cost/Acre

(180 lbs N/Acre) 10-0-10 1800 lbs $151.85

Double Boom Custom Application 3 times 37.65

Total for 3 Applications $189.50

Analysis/Material Amount
Program #2 Applied /Acre Cost/Acre

(180 lbs N/Acre) 10-2-10 1800 lbs $160.20

Double Boom Custom Application 3 times 37.65

Total for 3 Applications $197.85

Program #3

(180 lbs N,

Analysis/Material Amount
Applied /Acre Cost/Acre

Acre) 10-0-10 1800 lbs $151.85
Solicam 80DF 3 lbs 21.36
Karmex WP 4 lbs 7.74

Double Boom Custom Application 3 times 37.65

Total for 3 Applications $217.95

*Treated acre--one application

Table 5-A.--Nematicides

Analysis/Material

Program #1

Amount

Applied /Acre Cost/Acre

Temik 15G 33 lbs $105.60

Application 11.34

Total per Application $116.94

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Table 6-A.--Soil amendment

Program #1
(Every 3 yea

Program #2
(Every year)

rs)

Analysis/Material
Applied
Dolomite (Delivered)
Application
Total for 1 Application
(Average 1/3 Ton Applied/Yr)

Amount
/Acre
1 ton
1 time

Analysis/Material Amount
Applied /Acre Cost/Acre
Dolomite (Delivered) 1000 lbs $18.03
Application 7.61
Total per Application $25.64

Table 7-A.--Irrigation--annual cost per acre

DRIP

Operating

Maintenance of System
Total Cash Expenses

Fixed Depreciation Expense

Total Cash and Fixed Expenses

MICROSPRINKLER

Operating

Maintenance of System
Total Cash Expenses

Fixed Depreciation Expense

Total Cash and Fixed Expenses

DRAINAGE DITCH ANNUAL COSTS

Program #1
(Electric)
$ 62.10
44.04
$106.14

Your
Cost/Acre

42.35

$148.49

Program #3
(Electric)
$ 70.60
49.08
$119.68

Your
Cost/Acre

52.94

$172.62

Ditches/Canals Maintenance ($45.17/acre 3 years)
Weed Control in Ditches/Canals
Water Control: In/Out of Ditches and Canals
Total

Cost/Acre
$36.05
7.61
$43.66
$14.56

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Program #2
(Diesel)
$ 55.87
43.82
$ 99.69

45.25

$144.94

Your
Cost/Acre

Program #4
(Diesel)
$ 59.44
50.17
$109.61

56.56

$166.17

Program #5

Your
Cost/Acre

$15.06
14.19
13.21
$42.36

Table 8-A.--A listing of 2005 custom rates reported by sixteen Indian River and South Florida citrus caretakers

Range of Rate Average
Grove Practice Unit Reported Rate' Comments

CULTIVATION AND EQUIPMENT:
Labor
Mechanic Labor
Rotovate
Disc 7-8'
Disc 10-12'
Mow: 7-8'
9-10'
9-10'
15-16'
V-Mower
Herbicidez (Strip/Band-Single Boom)
Herbicidez (Strip/Band-Single Boom)
Herbicidez (Strip/Band-Double Boom)
Herbicidez (Chemical Mow)
Temikz
Plow
Backhoe
Middle Buster
Mound Builder
Grader Blade
Water Truck with Driver
Pickup Truck with Driver
Flatbed/Transport Truck with Driver
Tractor with Driver
ATV with Driver

Hour
Hour
Hour
Hour
Hour
Hour
Hour
Acre
Hour
Hour
Hour
Acre
Acre
Acre
Acre
Hour
Hour
Hour
Hour
Hour
Hour
Hour
Hour
Hour
Hour

$ 9.50-
30.00-
33.00-
27.50-
32.00-
27.50-
31.00-
9.00-
35.00-
33.00-
30.00-
13.00-
12.00-
2.50-
10.50-
32.50-
45.00-

31.00-
28.00-
30.00-
28.00-
35.00-
28.00-
20.00-

SPRAYING:'

500 GPA
250 GPA
125 GPA
Curtec (25 GPA)
Aerial
Aerial
Aerial
Aerial

FERTILIZING:z
Liquid Boom Application: Double Boom
Dry (Bulk)
Lime or Dolomite
Fertilize Young Trees:z Hand Spread
Fert. Spreader

Acre
Acre
Acre

$17.50
50.00
40.00
38.50
40.00
35.00
38.50
11.00
41.25
35.00
32.00
13.75
14.00
3.50
12.50
38.50
47.50

38.50
38.50
35.00
35.00
50.00
35.00
25.00

$13.56
39.56
37.75
33.00
35.84

Plus transportation and equipment
Labor and service truck

31.14
33.97
9.97
39.85 $9.00/acre
34.34
31.33 Plus materials
13.39 Plus materials;
12.75 Plus materials
3.07 Plus materials
11.34 Plus materials
34.67
45.70
38.50 With tractor an
34.84 With tractor an
33.60 Tractor/blade
32.75
31.67 Average miles
45.00
31.69
23.25

PTO AIR BLAST SPRAYER
1,000 Gallon Tank
with Electronic Sensing

Low High Average

29.00-
25.00-

36.00
29.00

38.00
32.92
28.03

$35.00/hour

Id driver
Id driver
md driver

traveled per year: Pick-up truck 21,298 miles

500 Gallon Tank

Average
39.00
29.00
27.00

Acre -- 22.00
Fixed Wing: $ 5.13/acre @ 5 gallons per acre
Fixed Wing: $ 7.17/acre @ 10 gallons per acre Bell Helicopter: $20.00/acre @ 10 GPA
Fixed Wing: $ 8.82/acre @ 15 gallons per acre
Fixed Wing: $11.25/acre @ 20 gallons per acre
Hand Sprayer (500 gallon tank) with tractor and 2 workers $45.00/hour

Acre 12.00- 13.40 12.55
Acre 7.00- 8.75 7.90 Average with VRT: $10.38/acre
Acre 7.50- 8.75 7.90
Hour 9.50- 17.50 13.56 Plus transportation and materials; 150/tree
Average: $7.25/acre; $26.00/hour Plus materials

(OVER)

Table 8-A.--A listing of 2005 custom rates reported by sixteen Indian River and South Florida citrus caretakers (cont'd.)

Range of Rate Average
Grove Practice Unit Reported Ratey Comments

IRRIGATION:
Ditch Mower
Water Furrow Disc
Water Furrow Cleaner
Water Furrow Shaper (Non-Laser Control)
Water Furrow Shaper (Laser Control)
Rotary Ditcher or Auger
Microsprinkler/Drip Irrigation Maintenance

Hour $32.00-
Hour 30.00-
Hour 35.00-
Hour -
Hour -
Hour 33.00-
Acre/Month 3.50-

$44.50 $ 36.20
38.50 34.67
38.50 36.34
65.00
80.00
38.50 35.50
4.75 4.25

Check & repair system; parts extra

REMOVING TREES:
Front-end Loader Hour
Tree Shearing (Cutting Tree at Ground Level) Hour
Prepare Site for Replanting Tree

PRUNING:
Hedging:
Single Side (Tractor Mounted) Hour
Double Side (Tractor Pulled) Hour
Double Side (Self Propelled) Hour
Double Side Rotary (Self Propelled)' Hour
Topping:
Double Sided Topper (Self Propelled) Hour
Topping Self Propelled Hour
Limb Lifter/Tree Skirt Trimmer Acre
Limb Lifter/Tree Skirt Trimmer (Double Sided Rotary) Hour
Removing Brush:
Haul Brush out of Grove (Front-End Loader) Hour
Mow/Chop Brush Hour

OTHER CUSTOM RATES:
Install Tree Wraps 15-50
Plant Trees (Solid Set) Tree
Plant Trees (Resets) Tree
Travel/Setup Charge Hour
Grove Management Charge/Month:
Supervising Grove Care Operations Acre
Handling Fruit Marketing $0.10-$
Supervising/Handling Chemicals/Fertilizer 5% to 1

Charge for personnel to oversee harvesting
operations and coordinate harvest in different
blocks/groves and keeping of harvesting labor
compliance records.

Consulting
Total Reported Acreage Provided Grove Service to:

$50.00- $65.00
50.00- 65.00
$0.25 $1.00

$- $-

250.00- 265.00

265.00- 285.00

$56.79 Avg. range 3-15 trees per hour
56.25 Avg. range 5-20 trees per hour

55.00
65.00
257.50 8 to 20 A/H depending on wood size; $14/A annual cut
185.00 5 to 15 A/H bed tops only; add 25% for furrows only

275.00 Avg. 8-15 ac depending on wood size type of cut;$30/acre
150.00
14.00 3 to 5 acres/hour
120.00 6 to 20 acres/hour

55.00- 65.00 59.25
32.00- 40.00 34.60

C/tree depending on type of wrap and number of trees; Annual maintenance cost: 35C/tree
$ 0.90- $ 1.75 $1.32 Varies as to density
2.00- 2.50 2.17 Varies as to the number of resets
22.62

3.00- 7.50 5.15 In addition to caretaking charges
0.25/box For Supervising and Marketing fruit
5% of materials cost

Box $ 0.05- $ 0.25

$0.15

Hour $125.00- $200.00 $150.00 Horticultural Evaluation and/or Financial Analysis/prospectus.

Acre 1,000- 14,000

4,870 Total acres reporting: 48,700

ZPlus materials. Caretakers reporting rates include labor, tractor and sprayer; supply truck included by most caretakers.
YCalculated by dividing the total number of caretakers reporting a grove practice rate into the sum reported. Unless otherwise stated, labor included
with all charges.
'Low acres is for 2 years regrowth hedging; high acres is for annual maintenance hedging.

Source: Ronald P. Muraro, Extension Farm Management Economist, Lake Alfred CREC, July 2005.

Table 9-A.--2005 summary of average chemical price estimates

Item
Fungicides: Abound EC
Aliette 80WP
Basic Copper Sulfate
Copper (Kocide 101)
Copper (Kocide 2000)
Copper (Champ II Flowable)
Cuprofix Disperss
Nu-Cop 50 DF
Enable
Gem 25
Headline EC
Oil 435 or 455
Oil 470 (Bio-lever)
Ridomil Gold EC
Safe-T-Oil
Topsin
Insecticides/Nematicides:
Admire 2F
Agri-Mek (0.15EC)
Award Fire Ant Bait
Bio-Vector
Carbaryl 4L
Carbaryl 80S
Chlorpyrifos 4E
Danitol
Guthion 2L
Guthion 50WP
Imidan 70W (Diaprepes)
Lorsban 4EC
Lorsban 15G
Malathion 5 EC
Micromite 80 WG
Microthiol
Nexter 75WP
Provado 1.6 F (nursery)
Sevin 80S
Sevin XLR
Spintor 2 S C
Sulphur 6F
Temik 15G
Vendex 50W
Vvdate

Your Price
(2005)

Unit
gal.
lb.
lb.
lb.
lb.
gal.
lb.
lb.
gal.
40 ozs.
gal.
gal.
gal.
gal.
gal.
lb.

gal.
gal.
lb.
gal.
gal.
lb.
gal.
gal.
gal.
lb.
lb.
gal.
lb.
gal.
gal.
lb.
lb.
gal.
lb.
gal.
gal.
gal.
lb.
lb.
gal.

Average
Price
218.12
11.59
1.40
1.80
2.33
22.55
1.75
1.88
57.55
120.59
206.13
2.21
2.46
649.15
3.15
14.08

520.28
563.52
9.01
412.50
27.25
4.47
57.26
147.58
32.48
10.07
8.25
34.15
1.72
25.18
87.95
0.70
89.56
417.75
5.17
30.96
492.50
4.00
3.20
14.86
56.28

v

Table 9-A.--2005 summary of average chei

Item

nical price estimates (cont'd.)
Average Your Price
Unit Price (2005)
gal. 48.39
gal. 16.04
gal. 16.50
lb. 3.87
gal. 131.14

Herbicides: Aqua Master
Diuron 4L
Direx 4L
Direx 80 DF
Fusilade DX 2E
Glyphosate:
Glyphomax Plus
Roundup (Original)
Roundup Ultra Max
Roundup Weather Max
Roundup Original Max
Touchdown
Gramoxone E (Paraquat)
Hyvar X 80 WP
Karmex 80 DF
Krovar I
Landmaster II
Mandate 2E
Pendimax
Poast Plus 1.0 EC
Princep (Caliber 90)
Princep 4L
Prowl
Simazine 90 DF
Simazine 4L
Solicam 80 DF
Simtrol
Surflan
Growth Regulators:
Citrus Fix
Pro-Gibb 3.91%
Tree-Hold
Other Spray Materials:
Borates (15%)
Manganese (32%)
Zinc (78%)
Adjuvant (Surfactant)

gal.
gal.
gal.
gal.
gal.
gal.
gal.
lb.
lb.
lb.
gal.
gal.
gal.
gal.
lb.
gal.
gal.
lb.
gal.
lb.

gal.

gal.
20 oz. bottle
gal.

lb.
lb.
lb.
gal.

SOURCE: Ronald P. Muraro, Extension Farm Management Economist, University of
Florida, IFAS, CREC, Lake Alfred, Florida, August 2005.

18.22
23.60
29.12
50.16
43.50
37.05
37.53
18.93
3.87
11.38
18.66
166.09
24.37
52.50
3.29
14.51
22.12
2.80
13.66
14.24
19.00
81.64

494.00
33.16
79.17

0.70
0.32
0.83
23.59

Table 10-A.--2005 summary of average fertilizer price estimates

Average Your Price
Item Unit Price (2005)

FERTILIZER (FOB Price @ Plant)
$
Dry Mix (Bulk)
17-0-17-3,g ton 238.82
17-4-17-2.4Mg ton 243.35
16-0-16 ton 218.35
16-0-16-4Mg ton 239.49
16-2-16-3Mg ton 240.45
15-2-15-2.4Mg ton 224.47
12-2-12-2.4Mg 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.

Table 10-A.--2005 summary of average fertilizer price estimates (cont'd.)

Average Your Price
Item Unit Price (2005)

Other Fertilizer Materials (Bulk)
Ammonium Nitrate (21% N Liquid) ton 179.88
Ammonium Nitrate (33.5% N Dry) ton 259.38
Ammonium Sulfate (21% N) ton 152.94
Calcium Nitrate (19% Ca, 15.5% N) ton 288.13
Dolomite (at mine--49% CaCO3, 36% MgCO3) ton 19.75
Muriate of Potash (60% K2O) ton 242.29
Potassium Nitrate (14% N; 46% K2O) ton 453.57
Sul-Po-Mag (SPM--21.9% K20) ton 202.43
Super Phosphate (20% P2O5) ton 214.25
Triple Superphosphate (48% P205) ton 242.92
Average Delivery Cost ton 14.32

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
Peter's 20-20-20 Foliar lb. 0.54
MZF gal. 6.53
Slow Release Nitrogen (SRN)
CitriBlen
15-3-19 ton 245.15
17-5-12 ton 237.50
18-6-11 ton 243.80
Sulfur Coated Urea (SCU) ton 586.80
Agriform 20-10-5 (500 tablets/box) box 40.00

SOURCE: Ronald P. Muraro, Extension Farm Management Economist, University of
Florida, IFAS, CREC, Lake Alfred, Florida, August 2005.

Table 11-A.--A listing of estimated comparative Southwest Florida citrus production costs per acre for oranges, 2004-2005z

Low Cost Processed Processed and Reduced Typical/Historical
Costs represent a mature (10+ years old)
Cultural Program Fresh Cost Fresh Fruit
Southwest Florida Orange Grove.
One-Year Alternative Cultural Program Cultural Program
PRODUCTION/CULTURAL COSTS:y
Weed Management/Control:
Mechanical Mow Middles (3 times per year) $ 22.91 $ 22.91 $22.91
Chemical Mow Middles (2 times per year) 9.78 9.78 9.78
General Grove Work (2 labor hours per acre) 27.12 27.12 27.12
Herbicide (1/2 tree acre treated):
Application (4 glyphosate or 3 residual applications) $29.12 $ 27.18 $27.18
Material 36.24 85.97 85.97
Total Herbicide Cost 65.36 113.15 113.15
Spray
Post Bloom: Application (125 GPA) 23.80
Material 29.52
Total Post Bloom Cost 53.32
Summer Oil #1: Application (125 GPA) 23.80 23.80
Material 64.22 64.22
Total Summer Oil #1 Cost 88.02 88.02
Summer Oil #2: Application (PTO -- 125 GPA) 23.80 23.80 23.80
Material 68.14' 29.37" 20.85
Total Summer Oil #2 Cost 91.94 53.17 44.65
Fertilizer (Bulk): 3 Applications 16.59 16.59 16.59
Material (17-4-17-2.4 MgO @ 204 lbs N
per acre) 142.80 142.80 142.80
Total Fertilizer Cost 159.39 159.39 159.39
Dolomite (one ton applied every 3 years)
Material/Application 14.56 14.56 14.56
Pruning: Topping ($27.50/A 2.5 yrs)' 11.00 11.00 11.00
Hedging ($25.75/A 2 yrs)' 12.88 12.88 12.88
Chop/Mow Brush after Hedging ($8.99/A + 2 yrs)' 4.50 4.50 4.50
Total Pruning Cost 28.38 28.38 28.38
Tree Replacement 1 thru 3 years of age: (4 trees/acre)
Remove Trees: Pull, Stack & Burn 4 Trees with
Front-end Loader 20.32 20.32 20.32
Prepare Site & Plant Tree (Includes 4 reset trees) 47.88 47.88 47.88
Supplemental Fertilizer, Tree Wraps Maintenance,
Sprout, Etc. (Trees 1-3 years old) 39.72 39.72 39.72
Total Tree Replacement Cost 107.92 107.92 107.92
Irrigation: Microsprinkler System" 166.17 166.17 166.17
Clean Ditches (Weed Control) 14.19 14.19 14.19
Ditch and Canal Maintenance 15.06 15.06 15.06
Water Control (Pump water in/out of Ditches and
Canals) 13.21 13.21 13.21
Total Irrigation Cost 208.63 208.63 208.63
IRRIGATED PROCESSED FRUIT PRODUCTION COSTS $735.99 $833.03
Supplemental Post Bloom:
Application (250 GPA) 27.95 27.95
Material 55.20 55.20
Total Supplemental Post Bloom Cost 83.15 83.15
Fall Miticide Spray: Aerial Application (15 GPA) 8.82 8.82
Material 29.72 29.72
Total Fall Miticide Cost 38.54 38.54
IRRIGATED FRESH FRUIT PRODUCTION COSTS $954.72 $999.52
zThe listed estimated comparative costs are for the example grove situation described in the Economic Information Report Series entitled:
"Budgeting Costs and Returns for Southwest Florida Citrus Production" and may not represent your particular grove situation in Southwest
Florida.

SOURCE: Ronald P. Muraro, University of Florida-IFAS, Citrus Research and Education Center, Lake Alfred, FL, August 2005.

Table 12-A.--A listing of estimated comparative Southwest Florida citrus production costs per acre for grapefruit, 2004-05z
Low Cost Processed Processed and Reduced Typical/Historical
Costs represent a mature (10+ years old)
Cultural Program Fresh Cost Fresh Fruit
Southwest Florida Red Grapefruit Grove.
One-Year Alternative Cultural Program Cultural Program
PRODUCTION/CULTURAL COSTS:'
Weed Management/Control:
Mechanical Mow Middles (3 times per year) $ 22.91 $ 22.91 $22.91
Chemical Mow Middles (2 times per year) 9.78 9.78 9.78
General Grove Work (2 labor hours per acre) 27.12 27.12 27.12
Herbicide (1/2 tree acre treated):
Application (4 glyphosate or 3 residual applications) $29.12 $27.18 $27.18
Material 36.24 85.97 85.97
Total Herbicide Cost 65.36 113.15 113.15
Spray
Post Bloom: Application (125 GPA) 23.80
Material 29.52
Total Post Bloom Cost 53.32
Summer Oil #1: Application (125 GPA) 23.80 23.80
Material 64.22 64.22
Total Summer Oil #1 Cost 88.02 88.02
Summer Oil #2: Application (PTO -- 125 GPA) 23.80 23.80 23.80
Material 68.14' 29.37" 20.85
Total Summer Oil #2 Cost 91.94 53.17 44.65
Fertilizer (Bulk): 3 Applications 16.59 16.59 16.59
Material (15-2-15-2.4 MgO @ 180 lbs N
and @150 lbs N) 135.60 113.00 113.00
Total Fertilizer Cost 152.19 129.59 129.59
Dolomite (one ton applied every 3 years)
Material/Application 14.56 14.56 14.56
Pruning: Topping ($27.50/A + 2.5 yrs)' 11.00 11.00 11.00
Hedging ($25.75/A + 2 yrs)' 12.88 12.88 12.88
Chop/Mow Brush after Hedging ($8.99/A + 2 yrs)' 4.50 4.50 4.50
Raise Skirts of Trees ($14.00 + 2 yrs)' -- 7.00 7.00
Total Pruning Cost 28.38 35.38 35.38
Tree Replacement 1 thru 3 years of age: (3 trees/acre)
Remove Trees: Pull, Stack & Burn 3 Trees with
Front-end Loader 15.24 15.24 15.24
Prepare Site & Plant Tree (Includes 3 reset trees) 35.91 35.91 35.91
Supplemental Fertilizer, Tree Wraps Maintenance,
Sprout, Etc. (Trees 1-3 years old) 29.79 29.79 29.79
Total Tree Replacement Cost 80.94 80.94 80.94
Irrigation: Microsprinkler System" 166.17 166.17 166.17
Clean Ditches (Weed Control) 14.19 14.19 14.19
Ditch and Canal Maintenance 15.06 15.06 15.06
Water Control (Pump water in/out of Ditches and
Canals) 13.21 13.21 13.21
Total Irrigation Cost 208.63 208.63 208.63
IRRIGATED PROCESSED FRUIT PRODUCTION COSTS $701.81 $783.25
Supplemental Post Bloom Spray:
Application (250 GPA) 27.95 27.95
Material 55.20 55.20
Total Supplemental Post Bloom Cost 83.15 83.15
Fall Miticide Spray: Aerial Application (15 GPA) 8.82 8.82
Material 29.72 29.72
Total Fall Miticide Cost 38.54 38.54
IRRIGATED FRESH FRUIT PRODUCTION COSTS $904.94 $949.74
'The listed estimated comparative costs are for the example grove situation described in the Economic Information Report Series entitled: "Budgeting Costs
and Returns for Southwest Florida Citrus Production" and may not represent your particular grove situation in Southwest Florida.

SOURCE: Ronald P. Muraro, University of Florida-IFAS, Citrus Research and Education Center, Lake Alfred, FL, August 2005.

Table 13-A.--Estimated cost of planting and maintaining a reset citrus tree through three years
of age, Southwest Florida area, August 2005

Resets/Replacement Trees Per Acre
1-2 3-5 6-10 11-25 26+
--------------- $ Cost Per Tree ----------------

Tree Removal 6.67 5.34 4.45 3.56 2.67

Plant ResetTree
Tree Cost (Container Tree) 4.50 4.50 4.35 4.35 4.35
Plant Tree and First Watering (Custom Charge) 2.93 2.55 2.17 1.84 1.57
Total Planting Costs 7.43 7.05 6.52 6.19 5.92

Site Preparationa
Rotovate 2.65 2.31 1.96 1.67 1.42
Re-Build Beds 3.00 2.61 2.22 1.89 1.60
Total Site Preparation 5.65 4.92 4.18 3.56 3.02

Total Planting and Site Preparation Costs 13.08 11.97 10.70 9.75 8.94

Supplemental Maintenance Year#1 4.13 3.82 3.59 3.39 3.19
(Trees 1-3 years old) Year #2 3.79 3.39 2.96 2.59 2.27
(Fertilizer, Tree Wraps, Sprout, etc.) Year #3 3.07 2.73 2.34 2.01 1.73

Total Supplemental Maintenance Costs 10.99 9.94 8.89 7.99 7.19

Summary of Tree Replacement Costs 1 3 6 6 6
Tree Removal Costs 6.67 5.34 4.45 3.56 2.67
Planting and Tree Removal Costs 13.08 11.97 10.70 9.75 8.94
Supplemental Maintenance Costs (Years 1 thru 3) 10.99 9.93 8.90 7.99 7.19
Total Three-Year Cumulative Costs 30.74 27.24 24.05 21.30 18.80

aSite preparation for bedded citrus grove. Fumigate planting site would cost approximately $2.50
per tree.

Source: Ronald P. Muraro, Farm Management Economist, CREC, Lake Alfred, FL, August 2005.

Table 14-A.-- Estimated average picking, roadsiding and hauling charges for Florida citrus, 2004-05

Fresh Fruit Processed Fruit

Range Average Range Average

$/Box $/Box $/Box $/Box

Picking Charges:

Early and Mid-Season Oranges

Valencia Oranges

Pink/Red Grapefruit

White/Marsh Grapefruit

Temples/Tangelos

Tangerines

Add for Spot Picking

Roadsiding Charges:

Early and Mid-Season Oranges

Valencia Oranges

Pink/Red Grapefruit

White/Marsh Grapefruit

Temples/Tangelos

Tangerines

0.70

0.70

0.60

0.60

0.85

1.25

0.10

0.60

0.67

0.65

0.65

0.70

0.75

1.75

1.25

1.25

1.25

1.65

2.00

0.50

Fresh Fruit

Range

$/Box

- 1.15

- 1.12

- 1.03

- 1.03

- 1.35

- 1.35

Fresh Fruit

All Varieties

$/Box

0.954

0.938

0.739

0.744

1.163

1.529

0.314

Average

$/Box

0.895

0.899

0.840

0.854

1.003

1.095

0.65

0.65

0.55

0.55

0.80

1.00

- 1.05

- 1.25

- 1.25

- 1.25

- 1.50

- 1.70

0.829

0.870

0.669

0.667

1.043

1.204

Processed Fruit

Range Average

$/Box $/Box

0.65

0.65

0.65

0.65

0.75

0.85

- 1.17 0.817

- 1.17 0.836

- 1.20 0.796

- 1.20 0.789

- 1.23 0.890

- 1.70 1.054

Processed Fruit

All Varieties

$/Box

Hauling Charges:

0 30 miles

31 50 miles

51 80 miles

81 100 miles

100 + miles

0.417

0.512

0.573

0.640

0.746

0.393

0.464

0.515

0.632

0.728

Table 15-A.--Estimated Average Packing Charges for Florida Citrus, 2004-05a

Domestic Export Temples/ Tangerines
.. Oranges Tangerines
Grapefruit Grapefruit Tangelos
------------------------- $/Carton --------------------
Total Packing Chargeb 3.835 4.245 4.192 4.495 5.056
--------------------------- $/Box ----------------------
Drenching Charge 0.178 0.178 0.186 0.186 0.186
Packinghouse Elimination
Packinghouse Elimination 0.594 0.594 0.571 0.571 0.571
Charges
Hauling Charges for
0.425 0.425 0.410 0.410 0.410
Eliminations
aPacking charges represents a total of nine citrus packinghouses from both the Indian River
and Interior production regions.

bTotal Packing Charge includes the following items:

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.

Table 16-A.--Historic prices for selected citrus varieties
Variety

Crop year

1961-62
1962-63
1963-64
1964-65
1965-66

1966-67
1967-68
1968-69
1969-70
1970-71

1971-72
1972-73
1973-74
1974-75
1975-76

1976-77
1977-78
1978-79
1979-80
1980-81

1981-82
1982-83
1983-84
1984-85
1985-86

1986-87
1987-88
1988-89
1989-90
1990-91

1991-92
1992-93
1993-94
1994-95
1995-96

1996-97
1997-98
1998-99
1999-00
2000-01

Early and
mid'-season
oranges

$1.93
2.17
4.43
2.57
1.44

0.81
1.86
1.56
1.15
1.10

1.98
1.43
1.38
1.46
1.69

1.89
3.90
4.44
3.59
3.67

4.27
4.88
5.09
7.30
3.92

4.56
6.72
6.63
6.01
5.38

5.44
3.23
3.76
3.25
3.62

3.18
2.81
4.35
3.19
2.60

Late season
oranges

$1.81
3.50
4.45
2.28
1.79

1.08
2.28
1.83
1.13
1.91

2.11
1.71
1.59
1.82
1.88

2.63
4.40
4.95
3.89
4.63

4.29
5.41
6.72
6.88
3.97

6.02
8.73
8.41
6.53
6.58

6.65
3.88
4.61
4.41
5.57

4.07
4.88
5.58
4.33
4.02

Temple
oranges

$2.17
3.09
4.45
2.77
1.80

0.88
2.79
2.22
1.47
1.91

1.95
1.95
1.64
1.68
1.79

2.16
3.92
4.89
2.89
4.21

4.01
3.99
5.34
5.59
3.01

3.60
5.69
5.46
5.64
6.31

6.51
2.99
2.73
3.47
4.44

3.22
3.07
5.12
2.55
2.05

All
Tangerines

$2.04
3.02
3.18
2.68
2.14

1.06
4.29
2.55
2.23
1.88

2.97
2.37
2.82
3.05
3.02

3.29
4.79
4.99
4.25
5.45

6.23
7.57
5.93
15.91
12.69

10.92
12.99
12.64
15.28
17.10

18.00
13.75
9.83
11.98
12.59

7.99
8.49
12.07
6.67
6.40

Seedless grapefruit

(white) (colored)

Tangelos

$3.36
4.66
4.83
4.00
2.85

1.64
3.22
2.47
1.13
1.04

1.69
1.39
1.25
1.45
1.42

1.42
3.29
3.90
2.87
3.92

3.58
4.37
4.28
7.08
4.06

3.72
5.58
6.31
5.10
6.11

7.16
3.31
2.38
2.64
3.63

2.19
1.66
4.53
2.52
1.27

$0.68
1.29
2.24
1.51
1.39

0.73
2.05
0.98
1.72
1.89

2.27
2.06
1.58
1.55
1.29

1.49
1.47
2.21
3.12
3.46

1.92
1.51
2.08
3.02
3.56

4.45
5.35
4.33
5.21
4.59

6.46
2.22
3.23
2.58
2.14

1.12
0.93
1.95
3.87
2.07

2001-02 2.88 4.20 2.19 7.81 2.47 1.96 2.54
2002-03 2.62 3.85 2.01 8.40 2.60 1.59 2.79
2003-04 2.20 3.64 1.07 7.46 7.48 1.88 3.28
2004-05' 2.56 4.34 2.48 12.02 2.45 11.95 13.65

aOn-tree average price per box (1-3/5 bushel box equivalent) for all methods of sale minus pick and haul charges.
bNavel and Hamlin cParson Brown and Pineapple dValencia eMarsh (white) or pink fPreliminary

Source: Florida Agricultural Statistics Service.

$0.86
1.81
2.54
1.82
1.64

0.94
2.48
1.15
1.92
2.15

2.69
2.53
2.12
2.59
2.23

2.04
2.09
3.13
3.80
4.22

2.80
3.20
4.05
4.84
4.98

5.80
5.93
4.71
6.30
6.85

6.87
3.11
3.38
1.66
1.77

1.91
1.50
2.65
3.36
2.28

Table 17-A.--Debt which can be supported per $1,000.00 annual payment capacity

Loan Interest rate paid on the loan
term
(years) 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%

926
1,783
2,577
3,312
3,993
4,623

5,206
5,747
6,247
6,710
7,139
7,536

7,904
8,244
8,559
8,851
9,122
9,372

9,603
9,818
10,675
11,258
11,655
11,925

922
1,771
2,554
3,276
3,941
4,554

5,119
5,639
6,119
6,561
6,969
7,345

7,691
8,010
8,304
8,576
8,825
9,056

9,268
9,463
10,234
10,747
11,088
11,315

917
1,759
2,531
3,240
3,890
4,486

5,033
5,535
5,995
6,418
6,805
7,161

7,487
7,786
8,061
8,313
8,543
8,756

8,950
9,129
9,823
10,274
10,567
10,757

913
1,747
2,509
3,204
3,840
4,420

4,950
5,433
5,875
6,279
6,647
6,984

7,291
7,572
7,828
8,062
8,276
8,471

8,650
8,812
9,438
9,835
10,087
10,247

909
1,754
2,487
3,170
3,791
4,355

4,868
5,335
5,759
6,145
6,495
6,814

7,103
7,367
7,606
7,824
8,022
8,201

8,365
8,514
9,077
9,427
9,644
9,779

905
1,724
2,465
3,136
3,743
4,292

4,789
5,239
5,646
6,015
6,348
6,650

6,923
7,170
7,394
7,596
7,779
7,945

8,095
8,231
8,739
9,047
9,234
9,348

901
1,713
2,444
3,102
3,696
4,230

4,712
5,146
5,537
5,889
6,207
6,492

6,750
6,982
7,191
7,379
7,549
7,702

7,839
7,963
8,422
8,868
8,855
8,951

897
1,701
2,423
3,070
3,650
4,170

4,640
5,056
5,431
5,768
6,070
6,341

6,583
6,801
6,997"
7,172
7,329
7,470

7,596
7,710a
8,123
8,364
8,503
8,587

893
1,690
2,402
3,037
3,605
4,111

4,564
4,968
5,328
5,650
5,938
6,194

6,424
6,628
6,811
6,974
7,119
7,250

7,366
7,469
7,843
8,055
8,175
8,244

889
1,679
2,381
3,006
3,561
4,054

4,492
4,882
5,228
5,536
5,810
6,054

6,270
6,462
6,633
6,785
6,920
7,040

7,146
7,241
7,579
7,766
7,870
7,928

885
1,668
2,361
2,974
3,517
3,998

4,423
4,799
5,132
5,426
5,687
5,918

6,122
6,302
6,462
6,604
6,729
6,840

6,938
7,025
7,330
7,496
7,586
7,634

881
1,657
2,341
2,944
3,475
3,942

4,355
4,718
5,038
5,319
5,568
5,787

5,979
6,149
6,299
6,431
6,547
6,649

6,739
6,819
7,095
7,242
7,320
7,361

877
1,647
2,322
2,914
3,433
3,889

4,288
4,639
4,946
5,216
5,453
5,660

5,842
6,002
6,142
6,265
6,373
6,467

6,551
6,623
6,873
7,003
7,070
7,105

873
1,636
2,302
2,884
3,392
3,836

4,224
4,562
4,858
5,116
5,341
5,538

5,710
5,861
5,992
6,106
6,207
6,294

6,370
6,437
6,663
6,778
6,836
6,866

870
1,626
2,283
2,855
3,352
3,784

4,160
4,487
4,772
5,019
5,234
5,421

5,583
5,724
5,847
5,954
6,048
6,128

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
($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).

	Front Cover
	Abstract
	Acknowledgement
	Table of Contents
	List of Tables
	Introduction
	Method of data collection
	Costs and inputs
	The grove situation
	Budget costs and returns
	Historical cost trends
	References
	Addenda