"5 -/ C I

- 'n L. Gunter

Economic Information

Report 61

Business Analysis of

Field Nurseries in Florida, 1975

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

September 1976

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ACKNOWLEDGMENTS

Special,appreciation is expressed to the field nurserymen who par-
ticipated in the nursery business analysis program and made their produc-
tion and accounting records available. Additionally, Louis Daigle, Jim
Cummings, and Larry Halsey, County agents in Dade, Broward, and Jefferson
Counties, respectively, provided invaluable assistance in the data
collection process. Carolyn Almeter enthusiastically tabulated the data
for this report, and Millie Pfeifler typed the report. As always any
errors in the data or in the interpretation of the information remain the
responsibility of the author.

TABLE OF CONTENTS

Page

ACKNOWLEDGMENTS. ..... . ..... . .. i

LIST OF TABLES .......... . . ...... ii

LIST OF FIGURES. .. ......... . . iii

INTRODUCTION ..... .......... .. . .. 1

PROCEDURE . . ... ... .. . .... .1

DEFINITIONS. . . . . . . 2

RESULTS AND DATA PRESENTATION. . . . .. 3

LIST OF TABLES

Table
1 Size of business, three large and three smaller volume
wholesale ornamental field nurseries in Florida, 1975. 5

2 Rates of production, three large and three smaller volume
wholesale ornamental field nurseries in Florida, 1975. 6

3 Labor efficiency, three large and three smaller volume
wholesale ornamental field nurseries in Florida, 1975. 7
4 Efficiency in use of capital, three large and three
smaller volume wholesale ornamental field nurseries in
Florida, 1975 . . . . . 8

5 Efficiency in use of space, three large and three smaller
volume wholesale ornamental field nurseries in Florida,
1975 . . . . . ... 9

6 Comparison of certain cost and return measures, three
large and three smaller volume wholesale ornamental field
nurseries in Florida, 1975 . . . 10

LIST OF TABLES (Continued)

Table Page
7 Average dollar costs per nursery for various categories
of expense, three large and three smaller volume whole-
sale ornamental field nurseries in Florida, 1975 . .

8 Percent of total costs for various categories of expense,
three large and three smaller volume wholesale ornamental
field nurseries in Florida, 1975 . . .

9 Average costs per square foot of production area, three
large and three smaller volume wholesale ornamental field
nurseries in Florida, 1975 . . . ....

10 Average costs per square foot of plant sales equivalent,
;hree large and three smaller volume wholesale ornamental
field nurseries in Florida, 1975 . . .... 14

11 Average costs per dollar of sales with plant inventory in-
crease added to sales, three large and three smaller volume
wholesale ornamental field nurseries in Florida, 1975. "

12 Average costs per dollar of sales without plant inventory
increase added to sales, three large and three smaller
volume wholesale ornamental field nurseries in Florida,
1975 . . . . .. . . 16

13 Income summary, three large and three smaller volume
wholesale ornamental field nurseries in Florida, 1975. .. 17

14 Eight factors associated with level of profit, three high
and three lower profit wholesale ornamental field nur-
:series in Florida, 1975. . . ... ... 18

15 Range of figures on profits and eight factors associated
with profits, six wholesale ornamental field nurseries in
Florida, 1975. . . . . ... 19

16 Comparison of business analysis factors for five years,
same four wholesale ornamental field nurseries in Florida,
which have furnished data for 1970, 1971, 1972, 1973, 1974,
and 1975 . . . . ... .. . .20

BUSINESS ANALYSIS OF FIELD NURSERIES IN FLORIDA, 1975

Dan L. Gunter

INTRODUCTION

This publication is a continuation of the nursery business analysis
series initiated in the late 1960s. This business analysis report pre-
sents information on sales, costs, and production efficiency aspects of
field nurseries in Florida for 1975.
The purpose of the business analysis report is: (1) to furnish
nurserymen various economic measures that may be used in evaluating the
efficiency of individual field nurseries; (2) to supply cooperating
nurserymen data so that they may make more informed management decisions;
(3) to provide individuals considering entering the wholesale field pro-
duction business an estimate of the input requirements and revenue; and
(4) to provide the Florida extension personnel data which may be used in
educational programs with nurserymen.

PROCEDURE

The information presented in this report is based on data collected
from the accounting and production records of six nurserymen. The nur-
serymen provided the data voluntarily and do not represent a statistically
selected sample. However, the field nurserymen participating in the
business analysis program are thought to represent some of the more
efficient nurseries in the state.
The data collected pertain to the individual growers' 1975 tax year
which, in some cases, does not conform to the 1975 calendar year.

DAR L. GUNTER is an extension production economist.

The data from the Individual nurseries are averaged and presented in
tabular form. The tables depict average values for all six nurseries,
three "large" nurseries and three "smaller" nurseries. For this report,
smaller nurseries are those that have plant sales of less than $250,000,
while large nurseries are defined as those with a value of plant sales
greater than $250,000.
Each table presents an analysis of some aspect of the field nursery
business. Where efficiency measures are presented, the "one best measure"
is shown and followed by "other useful indicators."

DEFINITIONS

Most of the terms used in the tables are self-explanatory. Definitions
of the terms used in this report, which may be less familiar, are as
follows:
Value of own plants sold.--This represents the total plant sales
minus the cost of plants purchased for immediate resale. Plants purchased
for growing-on are not deducted.
Square foot equivalents of own plants sold.--Each plant sold is
credited with taking up a specific amount of land space expressed in
square feet. The square feet used by the plant depends upon the field
spacing.
Percent turnover capital annually.--A ratio which is derived by
dividing the value of own plants sold by the total capital employed in
the enterprise.
Percent of production area turnover annually.--The square foot equiv-
alent of own plants sold divided by the total production area of the
nursery.
Labor income.--The residual when total costs (not including operator's
salary) are deducted from total gains. Gains are calculated as plant sales
olus inventory changes and miscellaneous income.
Nursery "farm income."--This is labor income plus the imputed return
on the investment which is shown as a non-cash cost.
Net return.--Total gain less total costs or labor income less
operator's salary.

Return to capital.--Nursery farm income less operator's salary.
Percent return to capital.--Return to capital divided by total owned
capital.

RESULTS AND DATA PRESENTATION

During 1975, the six field nurseries that participated in the nursery
business analysis program had an average nursery "farm income" of $3,260
on a total gain, made up of plant sales, inventory value declines, and
miscellaneous income of $240,287, The total gain reflects plant sales of
$257,282. However, the value of the plant inventory decreased by $17,567
during 1975.
The total gross costs for the average field nursery were $272,101.
Cash costs accounted for $249,120 of the total field nursery expenses,
while the non-cash costs accounted for $43,974. Subtracting the total
costs from the total gain, the average field nursery realized a net loss
of $52,807 during 1975.
The variation in profitability between the large and smaller nurseries
was substantial in 1975. The large nurseries had a net loss of $132,963,
while the smaller nurseries enjoyed a positive return of $27,350.
The average total cost per square foot of production area was about
11 cents for the large nurseries and about 15 cents for the smaller nur-
series. However, the average cost per dollar of sales was $1.35 for the
large nurseries and about 73 cents for the smaller nurseries.
Other differences between the large and smaller nurseries can be seen
by examination of.the various efficiency parameters presented in the
tables.
The data in Tables 1 through 12 relate to the size of the business,
rates of production, labor efficiency, capital efficiency, space effi-
ciency, costs and returns, and other efficiency factors. Analyses re-
lating to field nursery profitability are presented in Tables 13, 14,
and 15. For the analyses presented in Tables 14 and 15 the nurseries
are divided on the basis of nursery "farm income," Table 16 presents
information on the efficiency and profitability of four field nurseries
that have participated in the nursery business analysis program since 1970.

Where the information in the tables is rounded to the nearest whole
number, addition errors may be noted.
The information presented in Table 16 is of particular significance.
The gross income from the sale of field plant material for the four nur-
series which have been continuously participating in the nursery business
analysis program was down 18 percent in 1975 compared with 1974. The
cost per dollar of sales was $1.21 in 1975 as compared to 78 cents in
1974.
The sluggish construction industry is likely responsible for the
reduced demand for the field plant material and much of the poor perfor-
mance of the field nurseries participating in the 1975 nursery business
analysis program. In general, field nurserymen expect strengthening of
the demand for landscaping material as the building construction activity
increases.
Employing the definitions provided above, nursery managers can utilize
this report by completing the column--"Your nursery." By doing so, mana-
gers may be able to locate areas in their own operation where production
efficiency may be improved.

Table l.--Size of business, three large and three smaller volume wholesale
ornamental field nurseries in Florida, 1975

Average Average Average
Item Unit all 6 3 large 3 smaller Your
nurseries..nurseries..nurseries..nursery

One best measure
Value of own plants
sold
Other useful indicators
Value own plants sold
adjusted for plant in-
ventory change
Sq. ft. equiv. own
plants sold
Sq. ft. equiv. own
plants sold adjusted
for plant inventory
change
Average sq. ft. of
own plants in prod.
Average acre equiv.
of own plants in
prod.
Average number of
employees
Capital owned:
Growing plants
Land
Machinery & equipment
Buildings, fences,
wells, etc.
Supplies
Total owned capital
Capital managed:
Growing plants
Land
Machinery & equipment
Buildings, fences,
wells, etc.
Supplies
Total managed capital

257,282 432,353

239,i15 380,974

Sq. ft. 491,129 931,722

Sq. ft. 457,595 820,999

Sq. ft. 2,591,964

Acre

No.

59.50

16.91

361,970
32,275
29,937

11,223
3,020

4,691,024

107.69

29.83

586,669
32,961
52,150

18,757
4,750

82,210

98,456

50,535

60,522

492,903

11.32

4.00

137,271
31,588
7,725

3,689
1,291

438,426 695,287 181,564

361,970 586,669 137,271
80,014 128,440 31,588
29,937 52,150 7,725

11,983 20,277 3,689
3,020 4,750 1,291
486,925 792,286 181,564

aNurseries with annual sales of own plants in excess of $250,000.

Table 2.--Rates of production, three large and three smaller volume whole-
sale ornamental field nurseries in Florida, 1975

Average Average Average
Item Unit all 6 3 large 3 smaller Your
nurseries..nurseries .nurseries nursery

One best measure
Sq. ft. equivalent
of own plants sold
per acre in prod. Sq. ft. 8,254 8,652 4,466
Other useful indica-
tors
VaTue of own plants
sold per acre in
prod. $ 4,324 4,015 7,265
Value of own plants
sold adjusted for
plant inventory
change per acre
in production $ 4,029 3,538 8,701

aNurseries with annual sales of own plants in excess of $250,000.

Table 3.--Labor efficiency, three large and three smaller volume whole-
sale ornamental field nurseries in Florida. 1975

Average Average Average
Item Unit all 6 3 large 3 smaller Your
nurseries nurseries..nurseries nursery

One best measure
Value of own plants
sold per employee $ 15,215 14,494 20,552

Other useful indicators
Value of own plants
sold adjusted for
plant inventory
change per employee $ 14,176 12,772 24,614
Sq. ft. equivalent
of own plants sold
per employee Sq. ft. 29,044 31,234 12,634
Sq. ft. equivalent
of own plants sold
adjusted for plant
inventory change
per employee Sq. ft. 27,061 27,523 15,130
Average sq. ft. in
production per
employee Sq. ft. 153,280 157,259 123,226

aNurseries with annual sales of own plants in excess of $250,000.

Table 4.--Efficiency in use of capital, three large and three smaller
volume wholesale ornamental field nurseries in Florida, 1975

Average Average Average
Item Unit all 6 3 large 3 smaller Your
nurseries..nurseries .nurseries nursery

One best measure
Percent turnover of
owned capital annually % 58.68 62.18 45.28

Other useful indicators
Percent of turnover of
managed capital
annually % 52.84 54.57 45.28
Capital owned:
Per employee $ 25,927 23,308 45,391
Per acre $ 7,368 6,456 16,046
Capital managed:
Per employee $ 28,795 26,560 45,391
Per acre $ 8,183 7,357 16,046
Capital managed invest-
ment per employee in:
Plants $ 21,406 19,667 34,318
Land $ 4,732 4,306 7,897
Machinery & equipment $ 1,770" 1,748 1,931
Capital managed invest-
ment per acre in:
Plants $ 6,083 5,448 12,131
Land $ 1,345 1,193 2,792
Machinery & equipment $ 503 484 683
Percent of capital
managed in:
Plants % 74.34 74.05 75.60
Land % 16.43 16.21 17.40
Machinery & equipment % 6.15 6.58 4.25
Buildings, wells,
fences, etc. % 2.46 2.56 2.03
Supplies % .62 .60 .71
Total % 100.00 100.00 100.00

aNurseries with annual sales of own plants exceeding $250,000.

Table 5.--Efficiency in use of space, three large and three smaller volume
wholesale ornamental field nurseries in Florida, 1975

SAverage Average Average
Item Unit all 6 3 large 3 smaller Your
nurseries .nurseries nurseries nursery

One best measure
Percent of production
area (or plant) turn-
over annually

Other useful indicators
Sq. ft. equivalent of
own plants sold per
acre in production
Sq. ft. equivalent of
own plants sold ad-
justed for plant
inventory
Average value of
plant inventory per
acre in production

18.95

Sq. ft. 8,254

Sq. ft. 7,690

6,083

afurseries with annual sales of own plants exceeding $250,000.

19.86

8,652

7,624

5,448

10.25

4,466

5,349

12,131

Table 6.--Comparison of certain cost and return measures, three large and
three smaller volume wholesale ornamental field nurseries in
Florida, 1975

Average Average Average
Item all 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery
- - Cents -- -
Returns
Value of own plants sold per
sq. ft. of plant sales,
equivalent 52.39 46.40 162.68

Costs
Total costs per sq. ft. of
plant sales equivalent 59.68 55.23 141.72

Net returns per sq. ft. of
plant sales equivalent
Value of own plants sold per
sq. ft. of plant sales
equivalent minus costs per
sq. ft. of plant sales
equivalent -7.29 -8.82 20.96

Price goal
Prices per sq. ft. of plant
sales equivalent which would
have been required to yield
a 15% return on investment
(not including plant inven-
tory increase as a part of
return) 65.93 60.45 166.87

aNurseries with annual.sales of own plants exceeding $250,000.

Table 7.--Average dollar costs per nursery for various categories of ex-
pense, three large and three smaller volume wholesale ornamental
field nurseries in Florida, 1975

Average Average Average
Item all 6 3 largea 3 smaller Your
nurseries .nurseries.. nurseries nursery
- - Dollars - - -
Cash casts
Operator's salary 20,993 28,624 13,362
Other wages & salaries 104,949 193,614 16,286
Plants & seeds to grow on 12,808 25,323 293
Cans & other growing con-
tainers 2,349 4,430 268
Peat, soil, shavings, etc. 2,747 4,863 631
Fertilizer & lime 2,030 3,081 978
Pesticides & other chemicals 4,052 7,712 391
Other production supplies 31,807 62,129 1,486
Repairs & maintenance 6,571 8,131 5,011
Equipment operating costs 16,943 31,094 2,793
Travel & entertainment 2,165 3,156 1,174
Insurance 8,701 14,336 3,066
Telephone 1,796 3,221 371
Electricity 3,951 7,621 281
Taxes, licenses, & bonds 6,679 11,328 2,029
Advertising 1,663 2,871 455
Rent; land and/or buildings 8,336 16,672 0
Other cash expenses 10,580 15,744 5,415

Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation buildings, etc.
Inventory decrease on sup-
plies
Interest on capital @ 8%
.Total non-cash costs

Total all costs

249,120 443,950 54,290

6,911 11,711 2,111
1,323 2,121 525

666 1,167 165
35,074 55,623 14,525
43,974 70,621 17,326

293,094 514,572 71,616

nurseries with annual sales of own plants exceeding $250,000.

Table 8.--Percent of total
large and three
series in Florid

costs for various categories of expense, three
smaller volume wholesale ornamental field nur-

a, 1975

Average Average Average
Item all 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery
-- - Percent - - -

Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Cans & other growing con-
tainers
Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chemicals
Other production supplies
Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone
Electricity
Taxes, licenses,.& bonds
Advertising
Rent; land and/or buildings
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation buildings, etc.
Inventory decrease on sup-
plies
Interest on capital @ 8%
Total non-cash costs

Total all costs

7.16
35.81
4.37

.80
.94
.69
1.38
10.85
2.24
5.78
.74
2.97
.61
1.35
2.28
.57
2.84
3.61

5.56
37,63
4.92

.86
.94
.60
1.50
12.07
1.58
6.04
.61
2.79
.63
1.48
2.20
.56
3.24
3.06

18.66
22.74
.41

.37
.88
1.37
.55
2.08
7.00
3.90
1.64
4.28
.52
.39
2.83
.63
0
7.56

85.00 86.28 75.81

2.36 2.28 2.95
.45 .41 .73

.23 .23 .23
11.97 10.81 20.28

15.00

100.00

13.72

100.00

24.19

100.00

aNurseries with annual sales of own plants exceeding $250,000.

ii

13

Table 9.--Average costs per square foot of production area, three large
and three smaller volume wholesale ornamental field nurseries
in Florida, 1975

Average Average Average
Item all 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery
- - Cents - -
Cash costs
Operator's salary .8! .61 2.71
Other wages & salaries 4.05 4.13 3.30
Plants & seeds to grow on .45 .54 .06
Cans & other growing con-
tainers .09 .09 .05
Peat, soil, shavings, etc. .11 .10 .13
Fertilizer & lime .08 .07 .20
Pesticides & other chemicals .16 .16 .08
Other production supplies 1.23 1.32 .30
Repairs & maintenance .25 .17' 1.02
Equipment operating costs .65 .66 .57
Travel & entertainment .08 .07 .24
Insurance .34 .31 .62
Telephone .07 .07 .08
Electricity .15 .16 .06
Taxes, licenses, & bonds .26 .24 .41
Advertising .06 .06 .09
Rent; land and/or buildings .32 .36 0
Other cash expenses .41 .34 1.10
Total cash costs 9.61 9.46 11.01

Non-cash costs
Depreciation machinery &
equipment .27 .25 .43
Depreciation buildings, etc. .05 .05 .11
Inventory decrease on supplies .03 .02 .03
Interest on capital @ 8% 1.35 1.19 2.95
Total non-cash costs 1.70 1.51 3.95

Total all costs 11.31 10.97 14.53

aNurseries with annual sales of own plants exceeding $250,000,

Table 10.--Average costs per square foot of plant sales equivalent, three
large and three smaller volume wholesale ornamental field nur-
series in Florida, 1975

Average costs per sq. ft.a
plant sales.equivalent
Item
All 6 3 large 3 smaller Your
nurseries nurseries nurseries .nursery

- - Cents .. -- - -

Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Cans & other growing con-
tainers
Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chemicals
Other production supplies
Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone
Electricity
Taxes, licenses, & bonds
Advertising
Rent; land and/or buildings
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation buildings, etc.
Inventory decrease on sup-
plies
Interest on capital @ 8%
Total non-cash costs

Total all costs

4.59
22.94
2.80

.51
.60
.44
.89
6.95
1.44
3.70
.47
1.90
.39
.86
1.46
.36
1.82
2.31

3.49
23.58
3.08

.54
.59
.38
.94
7.57
.99
3.79
.38
1.75
.39
.93
1.38
.35
2.03
1.92

22.08
,26.91
.48

.44
1.04
1.62
.65
2.46
8.28
4.62
1.94
5.07
.61
.46
3.35
.75
0
8.95

54.44 54.07 89.70

1.51 1.43 3.49
.29 .26 .87

.15 .14 .27
7.66 6.78 24.00

9.61

64.05

8.60

62.68

28.63

118.33

aln this case, the square
item 4 in Table 1.

foot equivalent of plant sales are shown in

bNurseries with annual sales of own plants exceeding $250,000.

15

Table ll.--Average costs per dollar of sales with plant inventory increase
added to sales, three large and three smaller volume wholesale
ornamental field nurseries in Florida, 1975

Average costs per $ sales with plant
inventory increase added to sales
Item
All 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery
- - Cents - - -

Cash costs
Operator's salary 8.76 7.51 13.57
Other wages & salaries 43.78 50.82 16.54
Plants & seeds to grow on 5.3' 6.65 .30
Cans & other growing con-
tainers .98 1.16 .27
Peat, soil, shavings, etc. 1.15 1.28 .64
Fertilizer & lime .85 .81 .99
Pesticides & other chemicals 1.69 2.02 .40
Other production supplies 13.27 16.31 1.51
Repairs & maintenance 2.74 2.13 5.09
Equipment operating costs 7.07 8.16 2.84 _
Travel & entertainment .90 .83 1.19
Insurance 3.63 3.76 3.11
Telephone .75 .85 .38 _
Electricity i.65 2.00 .29
Taxes, licenses, & bonds 2.79 2.97 2.06
'Advertising .69 .75 .46
Rent; land and/or buildings 3.48 4.38 0
Other cash expenses 4.41 4.13 5.50
Total cash costs 103.92 116.53 55.14

Non-cash costs
Depreciation machinery &
equipment 2.88 3.07 2.14
Depreciation buildings, etc. .55 .56 .53
Inventory decrease on supplies .28 .31 .17
Interest on capital @ 8% 14.63 14.60 14.75
Total non-cash costs 18.34 18.54 17.60

Total all costs 122.27 135.07 72.74

aNurseries with annual sales of own plants exceeding $250,000.

16

Table 12.--Average costs per dollar of sales without plant inventory in-
crease added to sales, three large and three smaller volume
wholesale ornamental field nurseries in Florida, 1975

Average costs per $ sales with-
out plant inventory increase
added to sales
Item
All 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery

-- - Cents - - -
Cash costs
Operator's salary 8.16 6.62 16.25
Other wages & salaries 40.79 44.78 19.81
Plants & seeds to grow on 4.98 5.86 .36
Cans & other growing con-
tainers .91 1.02 .33
Peat, soil, shavings, etc. 1.07 1.12 .77
Fertilizer & lime .79 .71 1.19
Pesticides & other chemicals 1.57 1.78 .48
Other production supplies 12.36 14.37 1.81
Repairs & maintenance 2.55 1.88 6.10
Equipment operating costs 6.59 7.19 3.40
Travel & entertainment .84 .73 1.43
Insurance 3.38 3.32 3.73
Telephone .70 .75 .45
Electricity .1.54 1.76 .34
Taxes, licenses, & bonds 2.60 2.62 2.47
Advertising .65 .66 .55
Rent; land and/or buildings 3.24 3.86 0
Other cash expenses 4.11 3.64 6.59

Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation buildings, etc.
Inventory decrease on
supplies
Interest on capital @`8%
Total non-cash costs

Total all costs

96.83 102.68 66.04

2.69 2.71 2.57
.51 .49 .64

.26 .27 .20
13.63 12.87 17.67

17.09

16.33

21.08

113,92 119.02 87.11

aNurseries with annual sales of own plants exceeding $250,000.

Table 13.--Income summary, three large and three smaller
ornamental field nurseries in Florida, 1975

volume wholesale

Average Average Average
Item Unit all 6 3 largea 3 smaller Your
nurseries nurseries. nurseries..nursery

Value of production &
other gain
Value of own plants sold $
Inventory change own
plants $
Inventory increase for
supplies $
Misc. cash income $
Total gain
Cash costs less opera-
tor's salary $
Non-cash costs $
Total gross costs
Labor income $
Interest on investment $
Nursery "farm income" $
Operator's salary $
Net return $
Return to capital $
Percent return to capital %
Cents per square
Labor income
Nursery "farm income" t
Net return t
Return to capital

Cents per square foot
Labor income
Nursery "farm income"
Net return
Return to capital

275,282 432,353

-17,567 -51,379

0
573

0
634

'82,210

16,246

0
511

240,287 381,608 98,966

228,127 415,325 40,928
43,974 70,621 17,326

272,101
-31,814
35,074
3,260
20,993
-52,807
-17,733
-4.04

485,948
-104,339
55,623
-48,716
28,624
-132,963
-77,340
-11.12

58,254
40,712
14,525
55,237
13,362
27,350
41,875
23.06

foot of production area

of plant sales equivalent
-7 -13
1 -6
-12 -16
-4 -9

aNurseries with annual sales of own plants exceeding $250,000.

bln this case, plant sales equivalent is item 4 shown in Table 1.

Table 14.--Eight factors associated with level of profit, three high and
three lower profit wholesale ornamentSa field nurseries in
Florida, 1975

3 High 3 lower
Factor Unit profit profit Your
nurseries nurseries nursery

Profit
Nursery farm income $ 67,208 -60,688
Size of business
Value of own plants sold $ 189,342 325,221
Level of cost
Cost per $ of sales and plant
inventory value increase 108 164
Labor efficiency
Value of own plants sold per
employee $ 20,359 11,354
Sales price level
Difference between sales value
and costs per sq. ft. of
plant sales equivalent 18.55 -9.56
Sales and inventory gain
Gain in sales & plant inven-
tory value from previous
year $ 1,003 -164,531
Production rate
Sq. ft. equivalent own plants
sold per acre in production Sq. ft. 9,832 8,585
Capital use efficiency
Percent of capital turnover % 44.62 55.68

22.57

Space use efficiency
Percent plant turnover

"--~-

19.71

Table 15.--Range of figures on profits and eight factors associated with
profits, six wholesale ornamental field nurseries in Florida,
1975

Average figures for the 3 best
& the 3 poorest nurseries on
each factor.
Factor Unit
Average for Average for Your
3 best ..... 3 poorest nursery

Profit
Nursery farm income $ 67,208 -60,688
Size of business
Value of own plants
sold $ 432,353 82,210
Level of cost
Cost per $ of sales
& plant inventory
value increase 101 171
Labor efficiency
Value of own plants
sold per employee $ 20,359 11,354
Sales price level
Difference between
sales value & costs
per sq. ft. of
plant sales equiva-
lent 4 30.97 -21.99
Sales & inventory gain
Gain in sales & plant
inventory value from
previous year $ 14,962 -178,490
Production rate
Sq. ft. equivalent
own plants sold per.
acre in production Sq. ft. 12,495 5,923
Capital use efficiency
Percent of capital
turnover % 65.19 35.11
Space use efficiency
Percent plant turnover % 28.68 13.60

Table 16.--Comparison of business analysis factors for five years, same four wholesale ornamental field
nurseries in Florida, which have furnished data for 1970, 1971, 1972, 1973. 1974, and 1975

Average for the same four nurseries in
Factor
1970 1971 1972 1973 1974 -1975

Profit
Nursery farm income
Percent return to capital
Size of business
Value of own plants sold
Level of cost
Cost per $ sales and plant
inventory value increase
Labor efficiency
Value of own plants sold
per employee
Sales price'level
Difference between sales
value and costs per sq.
ft. of plant sales
equivalent
Sales & inventory gain
Gain in sales & plant
inventory value from
previous year
Production rate
Sq. ft. equivalent own
plants sold per acre
in production
Capital use efficiency
Percent of capital
turnover
Space use efficiency
percent plant turnover

121,666 103,269 207,641
31.14 20.32 36.10

105.956
12.54

181,302
25.92

1,477
-4.00

175,410 213,731 303,353 349,769 450,664 371,266

11,208 11,750

.80 5.82

15,160 16,848 18,546

8.25

2.91

121

15,392

11.06

89,533 -15,008 152,118 -45.5" 125,174 -121,930

5,253 4,426 6,886 7,71r 8,337 8,176

48.43 49.11 57.73 60.59 75.13 60.48

13.44

10.16

15.81

17.71

19.14

18.77

s;r

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^ \ K

	Front Cover
	Abstract
	Acknowledgement
	Table of Contents
	Main
	Tables