• Topics: Food and Resource Economics  | Muraro, Ron  | Oswalt, W Chris  | Central Florida Citrus Industry  | Budgeting Costs and Returns for Florida Citrus Production 

Budgeting Costs and Returns for Central Florida Citrus Production, 2004-05¹

The following is the abstract of a much larger report, which is only available in pdf format. To access the complete report, please click here or go to (http://edis.ifas.ufl.edu/pdffiles/FE/FE62900.pdf).

Abstract

Estimated costs and returns of growing round oranges in the Central Florida citrus area are presented for the twenty-second consecutive year. While the Central Florida citrus area refers primarily to Polk and Highlands Counties, the information in this report is also applicable to Hardee, Hillsborough, and Orange Counties. The format presented may be used by individual growers to budget costs and returns, utilizing individual data on specific groves.

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 losses of 70% to 80% on red and white grapefruit. 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 higher than in recent years.

The budget costs in this report represent a custom-managed operation. Therefore, all equipment costs are based on the average custom rate costs, and a 10 percent handling and supervision charge is added to the material cost.

Although the estimated annual per acre grove costs listed are representative for a mature citrus grove (10+ years old), the grove care costs for a specific grove site may differ depending upon the tree age, tree density, and the grove practices performed (e.g., spot herbicide for grass/brush regrowth under trees could add an additional $15.34 per acre; Diaprepes control could add $84.18 per acre for each foliar application; extensive tree loss 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 at $131.11 per 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, adding $28.86 per acre; etc.).

The Institute of Food and Agricultural Sciences (IFAS) is an Equal Opportunity Institution authorized to provide research, educational information and other services only to individuals and institutions that function with non-discrimination with respect to race, creed, color, religion, age, disability, sex, sexual orientation, marital status, national origin, political opinions or affiliations. For more information on obtaining other extension publications, contact your county Cooperative Extension service.

U.S. Department of Agriculture, Cooperative Extension Service, University of Florida, IFAS, Florida A. & M. University Cooperative Extension Program, and Boards of County Commissioners Cooperating. Larry Arrington, Dean.

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