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Publication #FE802

Economic Impacts of the Florida Citrus Industry in 2007–081

Mohammad Rahmani and Alan W. Hodges2

Introduction

In spite of the adverse effects of hurricanes and diseases such as citrus canker and citrus greening, the citrus industry remains a major part of Florida's agricultural and natural resource economy. Between the 2003–04 and 2007–08 production seasons, total citrus production acreage and volume declined by 20 and 30 percent, respectively; however, the total on-tree value of citrus fruit increased by 36 percent ($892 to $1,212 million) due to higher prices (Citrus Summary 2007–08).

This paper presents estimates of the total economic impacts of the Florida citrus industry on the state economy based on production values for the 2007–08 production season. Estimates are presented for citrus fruit for the fresh market and for citrus fruit for processed juice and byproducts. Economic impacts are expressed in terms of output, employment, value added, labor income, indirect business taxes, and other property incomes. This study updates previous studies for the 1999–2000 and 2003–04 production seasons (Hodges et al. 2001, 2006).

Methods

The total economic impacts of the Florida citrus industry in 2007–08 were evaluated using published values for citrus fresh fruit production, processed juices, and byproducts, together with a regional input-output model for Florida. Data for citrus fruit were taken from reports by the United States Department of Agriculture/National Agricultural Statistics Service (USDA/NASS), the Florida Department of Citrus, and the Florida Agricultural Statistics Service (FASS). Data on the value of processed citrus juice and quantities of citrus byproducts were provided by the Florida Department of Citrus, Economic Market Research. Data on the quantity of citrus byproducts were provided by the Florida Citrus Processors Association, and data on the values of byproducts were taken from Feedstuffs Magazine, and quotes from Florida Distillers, Inc. and Peace River Citrus Products.

The IMPLAN Pro economic impact and social accounting software package, licensed to the University of Florida by the Minnesota IMPLAN Group, Inc. (MIG), was used to develop a regional input-output model of the Florida economy with adjustments for the citrus industry. IMPLAN, an acronym for Impact Analysis for Planning, is an input-output modeling system that enables the estimation of the overall effects of changes in final demand for one or more industries in a defined region through the use of economic multipliers. Multipliers measure total changes in output, income, employment, or value added for a given change in direct output or employment, and estimate three components of change within the local area: direct effects, representing the initial change in the industry in question; indirect effects, representing changes in inter-industry transactions as supplying industries respond to changes in demands from the directly affected industries; and induced effects, reflecting changes in local spending that result from income changes in industry employee households. Social Accounting Matrix (SAM) multipliers in IMPLAN account for capital investment, taxes, and transfer payments such as social security, welfare, retirement pensions, and savings by household.

Regional models may be constructed with IMPLAN for a single county, groups of contiguous counties, or an entire state or region. In this case, the region of interest was defined as the state of Florida. Regional data for the model represent 2007, the most recent information available from the U.S. System of National Accounts and from the Regional Economic Information System maintained by the U.S. Commerce Department. Information used in the model is specific to the state for industry output, employment, income, and trade while national averages are used to estimate transactions between industries. The model was constructed with all social accounts endogenous, including households, governments (state/local, federal), and capital investment.

Four industry sectors in IMPLAN were used to analyze the Florida citrus industry: fruit farming (#4), frozen foods (#53), canned fruit and vegetable juices (#54), and wholesale trade (#319). These industry sectors are defined based on the primary product or service produced under the North American Industry Classification System (NAICS). It should be noted that the 2007 NAICS classification was reduced from 509 to 440 industry sectors. The output value of each major type of product was specified as an impact event in the appropriate industry sector: fresh market citrus fruit in the fruit farming sector, frozen citrus juices (FCOJ) in the frozen foods sector, chilled citrus juices in the canned (bottled) juices sector, and packed fresh citrus fruit in the wholesale trade sector. Values of processed byproducts were entered as impact events to the two processing sectors in proportion to their primary product values. Also, the export and local consumption values of citrus juice and byproducts were treated separately; only the direct impacts were considered for local consumption, since these values do not necessarily represent a change in overall regional economic activity.

Several adjustments were made to the IMPLAN model to reflect the special characteristics of the Florida citrus industry as distinguished from the national economy for fruit farming and frozen/canned food processing, which includes a variety of other food commodities. The set of inputs purchased by these industries, described by production functions, is what drives the estimates of indirect and induced impacts. The production functions for the two processing sectors were adjusted so that purchases from the fruit farming sector represented the only contributing sector in the model (i.e., other agricultural sectors were removed from the model). The production function for the fruit farming sector was adjusted based on budgeted production costs reported by Muraro (2007–2008) for cultural programs with and without canker-greening. Production expenditures are shown in Tables 8 and 9 for each cultural program, for the major citrus types, and for the production regions in Florida, including both fresh and processed early-season and mid-season oranges, Valencia oranges, and white and red grapefruit in the central, southern, and Indian River regions, respectively. Based on the average yield per acre for each citrus variety, the cost per box of produced citrus was estimated for each type and cultural program. Total cost of production for all types of citrus fruit is the number of boxes produced multiplied by the cost of production per box. The total expenditures then were categorized by fresh and processed products. Based on industry expert opinions, the Florida citrus production expenditure budget was constructed under the assumption that two-thirds of citrus growers follow the recommended citrus canker-greening cultural program and one-third of citrus growers do not follow the canker-greening program (Table 1). Industry purchases from other sectors included greenhouse and nursery products, agricultural support services, petrochemical manufacturing, fertilizer mixing and manufacturing, pesticides and agricultural chemicals, monetary authorities and depository credit intermediaries, and other state and local government enterprises. Many of the cultural operations were treated as labor inputs to production and represent value-added rather than industry purchases.

Results and Discussion

The value of citrus fruit production for the fresh market and for processing is summarized by citrus variety in Tables 2 and 3. In the 2007–08 season, total citrus fruit production in Florida was 203.8 million boxes, including 170 million boxes of early season, mid-season, Temple, Navel, and Valencia oranges; 27 million boxes of grapefruit; and 7 million boxes of specialty citrus (tangelos and tangerines). Of the total citrus crop, some 20 million boxes (10 percent) were produced for the fresh market and 184 million boxes (90 percent) were utilized for processing (Table 2). About 50 percent of the red seedless grapefruit was produced for the fresh market, while 79 percent of the white seedless grapefruit and more than 96 percent of the oranges were processed for juice. Average free on board (F.O.B.) prices for fresh market fruit sold from packinghouses ranged from $18.40 for tangelos to $26.20 for tangerines and mandarins. Average packing house door (P.H.D.) prices received from producers for fresh fruit were $11.30 per box for early, mid-season, and Navel oranges; $10.40 for Valencia oranges; and $12.15 to $13.00 for grapefruit (Table 2). The total value of Florida citrus fruit based on delivered prices in 2007–08 was $1.76 billion, with fresh fruit accounting for $253 million and processed fruit accounting for $1.50 billion. The value of red seedless grapefruit for the fresh market was more than $113 million, or 45 percent of the total value of fresh market citrus. Valencia oranges represented 54 percent of the processed fruit market value, while early, mid-season, and Navel oranges accounted for 43 percent. The total values of Florida fresh and processed citrus as well as the value of fresh packinghouse product values based on F.O.B. prices are shown in Table 3. The fresh wholesale margin is the difference between what is paid by packinghouses (delivered prices) and the value of shipped fruit (F.O.B. prices).

The total (F.O.B.) value of citrus juice in the 2007–08 production season was $3.45 billion, including $2.37 billion for chilled juice and $1.08 billion for frozen juice (Table 4). More than $3.25 billion, or 94 percent of the citrus juice was exported outside of Florida to other states or foreign countries, while only 6 percent was consumed in Florida. In addition to orange and grapefruit juices, the citrus processing industry produces several other important byproducts, including citrus pulp and meal, molasses, and citrus oil. The essential oil D-limonene, recovered from the distilled extracts of fruit peel and seeds (citrus oil), is used for a variety of chemical products such as cleaners, disinfectants, flavors, and fragrances. Citrus pulp and meal, and molasses are sold as livestock feed ingredients. During the 2007–08 production season, Florida citrus processors produced 722,895 tons of citrus pulp and meal, 57,058 tons of molasses, and more than 24 million pounds of citrus oil. The total value of these byproducts in 2007–08 was about $136 million (Table 5), with citrus pulp and meal representing about 74 percent of the byproduct values.

Total economic impacts estimated for the Florida citrus industry in 2007–08 are summarized in Table 6. The direct output or sales revenue was more than $4.02 billion and the total output impact of the industry exceeded $8.9 billion, including $3.57 billion from citrus fruit for juice production, $601 million from citrus fruit for fresh market, $4.32 billion from citrus juice and byproducts, and $415 million from fresh citrus marketing (packing) margins. The indirect output impacts resulting from purchases of inputs from other industry sectors were $1.37 billion, while the induced output impacts resulting from consumer spending by employee households were $3.51 billion. The ratio between the total output impact and direct output implies an overall multiplier effect of about 2.2. These multiplier effects are significant because the export-based nature of the Florida citrus industry brings new money into the state economy.

The Florida citrus industry had a total employment impact of 75,828 jobs, including 27,425 jobs directly in the industry, plus 16,967 indirect jobs in allied industries, and 31,436 jobs created by employee spending (induced effect). These employment impacts represent both full-time and part-time jobs, and are not adjusted to a full-time equivalent basis.

Total value-added impacts were $4.62 billion, including $1.72 billion in the citrus industry and $2.90 billion in other sectors. Value added is a broad measure of labor and property income generated, and is equivalent to industry output less industry purchases. Labor income impacts amounted to about $2.77 billion, which represented all wages and salary earnings by industry employees and proprietor's income to business owners. Other property income impacts of $1.45 billion represented rents, interest, dividends, royalties, etc. Indirect business tax impacts were $310 million, which included most forms of local and state taxes, such as property taxes, sales taxes, water management district levies, intangible taxes, motor fuel and vehicle taxes, excise taxes, etc., but did not include federal income taxes.

Total economic impacts of the Florida citrus industry by major industry group are shown in Table 7 . Naturally, the largest impacts occurred in the agriculture and manufacturing groups, where the direct impacts occurred from fruit farms and citrus processing. Output impacts in agriculture and manufacturing were $2.06 billion and $2.48 billion, respectively. Large output impacts also occurred in wholesale trade ($548 million); real estate and rentals ($534 million); government ($428 million); construction ($409 million); finance and insurance ($363 million); health and social services ($347 million); professional, scientific, and technical services ($318 million); and retail trade ($312 million). Employment impacts for agriculture (30,568 jobs) were much greater than for manufacturing (7,607 jobs) due to the labor-intensive nature of agriculture, particularly for citrus fruit harvesting. Important employment impacts also occurred in government (5,285 jobs), retail trade (4,682 jobs), and health and social services (4,143 jobs). These impacts in other industries indicate the significant linkages of the citrus industry throughout the Florida economy.

While the citrus industry still represents a major agricultural activity in Florida, these economic impact results for 2007–08 were lower compared to the previous study using 2003–04 data. The total output impacts decreased from $9.29 billion in 2003–04 to $8.91 billion in 2007–08; employment impacts declined from 76,336 to 75,827 jobs; and value added shrank from $4.87 billion to $4.62 billion. On the other hand, the measures for labor income increased from $2.73 billion to nearly $2.77 billion, and indirect business taxes increased from $287 million to $310 million.

These economic impact estimates are based on well-documented values for citrus products; however, certain limitations of the analysis should be considered when interpreting the results. First, the budget information for citrus fruit production was aggregated into a relatively small number of IMPLAN sectors, which may lead to underestimation of the linkages to other sectors of the state's economy. Second, there was no specific information available for the citrus processing sector, other than purchases from the fruit farming sector, which would enable adjustment of the production function for this sector. To more accurately estimate the economic impacts of this large sector would require further details on processing expenditures. Finally, the change in NAICS classification, which reduced the number of industry sectors in the model, may have affected the estimated multiplier effects.

References

Feedstuffs. 2008. Price data for citrus pulp and meal. Feedstuffs, the Weekly Newspaper for Agribusiness, Minnetonka, MN (various issues).

FCPA. 2009. Statistical Summary 2007–2008 Season. Florida Citrus Processors Association, Winter Haven, FL.

FDACS/FASS. 2009. Citrus Summary, 2007–08. Florida Department of Agriculture and Consumer Services, Florida Agricultural Statistics Service, Tallahassee, FL (March 2009). http://www.nass.usda.gov/fl

Hodges, A.W, E. Phillippakos, W.D. Mulkey, T. Spreen, and R. Muraro. 2001. Economic Impact of Florida's Citrus industry, 1999–2000. Economic Information Report 01–02, Food and Resource Economics Department, University of Florida, Gainesville, FL (July). http://www.fred.ifas.ufl.edu/economic-impact-analysis/pdf/er01-2-citrus.pdf

Hodges, A.W., M. Rahmani, and W.D. Mulkey. 2006. Economic impact of Florida's citrus industry, 2003–04. Electronic Data Information Source (EDIS) FE633. Food & Resource Economics Department, University of Florida, Gainesville, FL. http://edis.ifas.ufl.edu/fe633

Minnesota IMPLAN Group (MIG). IMPLAN economic impact and social accounting software and 2007 data for Florida. Minnesota IMPLAN Group, Inc., Stillwater, MN. http://www.implan.com

Muraro, R.P. 2009. Summary of 2007–2008 Citrus Budget for the Central Florida (Ridge) Production Region. Citrus Research and Education Center, University of Florida, Lake Alfred, FL. http://www.crec.ifas.ufl.edu/extension/economics/pdf/CF_Budget_Summ_2007_2008.pdf

Muraro, R.P. 2009. Summary of 2007–2008 Citrus Budget for the Indian River Production Region. Citrus Research and Education Center, University of Florida, Lake Alfred, FL. http://www.crec.ifas.ufl.edu/extension/economics/pdf/IR_Budget_Summ_2007-2008.pdf

Muraro, R.P. 2009. Summary of 2007–2008 Citrus Budget for the Southwest Florida Production Region. Citrus Research and Education Center, University of Florida, Lake Alfred, FL. http://www.crec.ifas.ufl.edu/extension/economics/pdf/SW_Budget_Summ_2007_2008.pdf

USDA/NASS. 2008. Citrus Fruits, 2008 Summary (Fr Nt 3–1 08). United States Department of Agriculture, National Agricultural Statistics Service (USDA/NASS), Washington, D.C. (September). http://www.nass.usda.gov/

Tables

Table 1. 

Industry purchases for Florida citrus fruit production, by IMPLAN sector, 2007–08.

IMPLAN Sector

Fresh Fruit

Processed Fruit

TOTAL (Processed + Fresh)

 

(million dollars)

Greenhouse & nursery products (6)

3.6

34.8

38.4

Agricultural support services (19)

80.7

710.5

791.2

Petrochemical manufacturing (120)

6.1

42.3

48.4

Fertilizer mixing & manufacturing (130)

17.9

205.5

223.5

Pesticides & agricultural chemicals (131)

19.7

168.6

188.3

Monetary authorities & depository credit intermediaries (354)

17.9

170.0

187.9

Other state & local government enterprises (432)

10.0

73.7

83.7

Total intermediary commodity purchases

155.9

1,405.4

1,561.4

Indirect business taxes

10.0

73.7

83.7

Total value-added

   

874.9

Total sales

   

1,755.7

Table 2. 

Florida citrus fruit production values and average prices for Florida, 2007–08.

 

Production Volume

Average Price

Citrus Type

Fresh

Processed

Total

Fresh*

Processed*

Packed Fresh (FOB)

 

(1,000 boxes)

(dollars per box)

Early, mid-season, and Navel oranges

3,885

79,615

83,500

$11.30

$8.05

$20.30

Valencia oranges

1,977

84,723

86,700

$10.40

$9.49

$19.40

White seedless grapefruit

1,905

7,095

9,000

$12.15

$2.73

$20.90

Red seedless grapefruit

8,716

8,884

17,600

$13.00

$2.65

$21.40

Tangelos

432

1,068

1,500

$9.10

$4.61

$18.40

Tangerines and Mandarins

3,282

2,218

5,500

$14.70

$4.45

$26.20

Total

20,197

183,603

203,800

     

* Packinghouse door (P.H.D.) prices

Sources: FASS, Citrus Summary, 2007–08; USDA/NASS, Citrus Fruits 2008 Summary.

Table 3. 

Value of fresh and processed Florida citrus fruit and packinghouse margin, 2007–08.

Citrus Type

Value Fresh

Value Processed

Total Value (delivered-in basis)

Total Value Fresh Shipments

Fresh Packinghouse Marketing Margin*

 

(million dollars)

Early, mid-season, and Navel oranges

44

641

685

79

35

Valencia oranges

21

804

825

38

18

White seedless grapefruit

23

19

42

40

17

Red seedless grapefruit

113

24

137

187

73

Tangelos

4

5

9

8

4

Tangerines and Mandarins

48

10

58

86

38

Total

253

1,503

1,756

438

185

* Fresh fruit packed (F.O.B.) minus cost of purchased fruit.

Table 4. 

Value of Florida frozen and canned citrus juice for local consumption and export, 2007–08.

Product

Out-of-State Shipments

In-State Consumption

Total Value

 

(million dollars)

Frozen orange juice

972.4

57.5

1,029.9

Chilled & canned (bottled) orange juice

2,141.0

132.7

2,273.7

Frozen grapefruit juice

50.6

1.5

52.1

Chilled & canned (bottled) grapefruit juice

87.8

4.3

92.1

Total for all citrus juice products

3,251.8

196.0

3,447.8

Sources: Florida Citrus Mutual, Annual Statistical Report, 2007–08; Florida Department of Citrus, Economic and Market Research Unit, Gainesville, FL.

Table 5. 

Volume and value of Florida processed citrus byproducts, 2007–08.

Product

Production Volume

Unit

Price

Total Value

     

(dollars/unit)

(million dollars)

Citrus pulp & meal

722,895

Tons

$140.00

$101.2

Molasses

57,058

Tons

$125.00

$7.1

Citrus oil

24,041,791

Pounds

$1.15

$27.7

Total

     

$136

Sources: Florida Citrus Processors Association, 2007–08 Statistical Summary (production volume); Feedstuffs Magazine, Florida Distillers, and Peace River Citrus Products (price).

Table 6. 

Summary of economic impacts of the Florida citrus industry, 2007–08.

Citrus Industry Segment

Economic Impact Type

Output

Employment

Value Added

Labor Income

Other Property Income

Indirect Business Taxes

   

(million $)

(jobs)*

(million $)

(million $)

(million $)

(million $)

Citrus fruit production for juice processing

Total

3,571

41,206

2,087

1,185

762

139

Direct

1,503

16,987

814

314

457

43

Indirect

434

9,600

283

230

37

16

Induced

1,634

14,620

989

641

268

80

Citrus fruit production for fresh consumption

Total

601

6,941

351

200

128

23

Direct

253

2,861

137

53

77

7

Indirect

73

1,617

48

39

6

3

Induced

275

2,463

167

108

45

13

Citrus juice processing and byproducts

Total

4,319

24,556

1,920

1,218

504

111

Direct

2,080

6,522

644

411

142

4

Indirect

819

5,380

418

256

126

36

Induced

1,420

12,654

858

551

236

71

Fresh citrus marketing margins

Total

415

3,124

261

164

60

37

Direct

184

1,055

120

70

23

26

Indirect

46

370

27

18

7

2

Induced

185

1,699

114

76

30

9

All segments of citrus industry

Total

8,906

75,828

4,619

2,767

1,454

310

Direct

4,020

27,425

1,715

848

699

80

Indirect

1,372

16,967

776

543

176

57

Induced

3,514

31,436

2,128

1,376

579

173

* Employment impact represents full-time, part-time, and seasonal jobs.

Table 7. 

Economic impacts of the Florida citrus industry by major industry group, 2007–08.

Industry Group*

Output

Employment

Value Added

Labor Income

Other Property Income

Indirect Business Taxes

 

(million $)

(jobs)

(million $)

(million $)

(million $)

(million $)

Agriculture, forestry, fisheries & hunting

2,061

30,568

1,167

565

546

55

Mining

13

35

3

1

1

0

Utilities

111

182

74

23

39

12

Construction

409

2,943

171

142

26

3

Manufacturing

2,478

7,607

746

477

174

8

Wholesale trade

548

3,134

356

209

68

78

Retail trade

312

4,682

216

135

33

48

Transportation & warehousing

181

1,582

87

64

19

4

Information

155

566

72

38

28

6

Finance & insurance

363

1,897

187

118

62

7

Real estate & rental

534

1,844

376

43

274

59

Professional, scientific & technical services

318

2,612

197

162

31

4

Management of companies

137

627

77

62

14

1

Administrative & waste services

129

1,987

75

60

13

2

Educational services

38

635

22

20

2

0

Health & social services

347

4,143

215

183

29

3

Arts, entertainment & recreation

44

616

28

18

7

4

Accommodation & food services

163

2,602

86

59

17

10

Other services

139

2,283

73

54

13

6

Government & non-classified sectors

428

5,284

393

334

59

0

Total

8,906

75,827

4,619

2,767

1,455

310

* Industry groupos defined according to North American Industrial Classification System (NAICS).

Table 8. 

Florida citrus production budgets, by type and region, without Canker-Greening Cultural Program, 2007–08.

Expense

Central, Processed Oranges (Valencia)

Central, Fresh Oranges (Valencia)

Indian River, Processed Grapefruit

Indian River, Fresh Market Grapefruit

Southern, Processed Oranges (Hamlin)

Southern, Processed Grapefruit

Southern, Fresh Oranges (Hamlin)

Southern, Fresh Grapefruit

 

(dollars per acre)

Tree replacement, prepare site, plant tree

45.84

45.84

61.12

61.12

61.12

45.84

61.12

45.84

Mechanical mow middle (4/year)

49.34

49.34

37.01

37.01

28.35

28.35

28.35

28.35

Chemical mow middles (2/year)

18.24

18.24

27.37

27.37

26.48

26.48

26.48

26.48

General grove work (2 hours/A)

31.30

31.30

31.30

31.30

31.30

31.30

31.30

31.30

Herbicide application

30.93

30.93

43.53

43.53

30.99

30.99

30.99

30.99

Spray/pest management, applications

60.58

60.58

159.20

159.20

49.68

114.30

49.68

114.30

Fertilizer (bulk), 4 applications

38.68

38.68

38.68

38.68

21.76

27.16

27.16

27.16

Dolomite, material/application

14.76

14.76

14.76

14.76

14.76

14.76

14.76

14.76

Pruning/topping

15.00

15.00

15.00

15.00

12.00

12.00

12.00

12.00

Pruning/hedging

15.33

15.33

15.33

15.33

15.33

15.33

15.33

15.33

Chop/mow brush after hedging

7.80

7.80

7.80

7.80

7.80

7.80

7.80

7.80

Irrigation, microsprinkler system, maintenance

60.60

60.60

60.60

60.60

60.60

60.60

60.60

60.60

Raise skirt of trees

   

7.40

7.40

 

7.40

 

7.40

Tree replacement, remove trees

20.49

20.49

27.32

27.32

27.32

20.49

27.32

20.49

Clean ditches (weed control)

   

18.56

18.56

18.56

18.56

18.56

18.56

Ditch and canal maintenance

   

17.48

17.48

17.48

17.48

17.48

17.48

Water control

   

16.72

16.72

16.72

16.72

16.72

16.72

Supplemental post bloom spray, application

   

0.00

     

24.33

 

Fall miticide application

 

26.83

0.00

     

8.02

 

Management costs

48.00

48.00

48.00

48.00

48.00

48.00

48.00

48.00

Harvesting: pick/spot/roadside & haul, and canker decontamination

1,118.66

1,118.66

1,107.34

1,107.34

1,287.26

1,319.85

1,287.26

1,319.85

Irrigation, microsprinkler system, diesel fuel

93.16

93.16

93.16

93.16

93.16

93.16

93.16

93.16

Fertilizer materials

380.88

380.88

310.60

310.60

386.68

283.12

386.68

283.12

Supplemental fertilizer, spray, sprout

51.69

51.69

68.92

68.92

68.92

51.69

68.92

51.69

Herbicide material

113.65

113.65

92.73

92.73

84.32

84.32

84.32

84.32

Spray/pest management, materials

85.32

85.32

219.47

219.47

125.65

208.06

125.65

208.06

Spray summer oil #2 materials

54.60

54.60

           

Supplemental fall miticide materials

 

9.60

           

Supplemental post bloom spray, materials

   

0.00

   

0.00

50.80

 

Fall miticide materials

 

32.72

0.00

   

0.00

28.50

 

Mandatory citrus canker decontamination costs

31.67

31.67

31.67

31.67

31.67

31.67

31.67

31.67

Interest on operating (cultural) costs

58.16

58.16

65.73

65.73

56.75

59.30

56.75

59.30

Interest on average capital investment

321.22

321.22

321.22

321.22

321.22

321.22

321.22

321.22

Property tax / water management tax / fly protocol coat

61.00

61.00

182.86

182.86

61.00

117.65

61.00

117.65

DOC assessment

107.52

107.52

155.50

155.40

122.16

183.75

122.16

183.75

Total Cost Per Acre

2,934.42

3,003.57

3,296.28

3,296.28

3,132.44

3,297.35

3,244.09

3,297.35

Table 9. 

Florida citrus production budgets, by type and region, with Canker-Greening Cultural Program, 2007–08.

Expense

Central, Processed Oranges (Valencia)

Central, Fresh Oranges (Valencia)

Indian River, Processed Grapefruit

Indian River, Fresh Market Grapefruit

Southern, Processed Oranges (Hamlin)

Southern, Processed Grapefruit

Southern, Fresh Oranges (Hamlin)

Southern, Fresh Grapefruit

 

(dollars per acre)

Tree replacement, prepare site, plant tree

85.62

85.62

140.28

140.28

99.89

85.62

99.89

85.62

Mechanical mow middle (4/year)

49.34

49.34

37.01

37.01

28.35

28.35

28.35

28.35

Chemical mow middles (2/year)

18.24

18.24

27.37

27.37

26.48

26.48

26.48

26.48

General grove work (2 hours/A)

31.30

31.30

31.30

31.30

31.30

31.30

31.30

31.30

Herbicide application

30.93

30.93

43.53

43.53

30.99

30.99

30.99

30.99

Spray/pest management, applications

167.12

167.12

265.74

265.74

139.87

222.14

139.87

222.14

Fertilizer (bulk), 4 applications

38.68

38.68

38.68

38.68

21.76

27.16

27.16

27.16

Dolomite, material/application

14.76

14.76

14.76

14.76

14.76

14.76

14.76

14.76

Pruning/topping

15.00

15.00

15.00

15.00

12.00

12.00

12.00

12.00

Pruning/hedging

15.33

15.33

15.33

15.33

15.33

15.33

15.33

15.33

Chop/mow brush after hedging

7.80

7.80

7.80

7.80

7.80

7.80

7.80

7.80

Irrigation, microsprinkler system, maintenance

60.60

60.60

60.60

60.60

60.60

60.60

60.60

60.60

Raise skirt of trees

   

7.40

7.40

 

7.40

 

7.40

Tree replacement, remove trees

34.14

34.14

39.83

39.83

39.83

34.14

39.83

34.14

Clean ditches (weed control)

   

18.56

18.56

 

18.56

 

18.56

Ditch and canal maintenance

   

17.48

17.48

 

17.48

 

17.48

Water control

   

16.72

16.72

16.72

16.72

16.72

16.72

Supplemental post bloom spray, application

   

32.91

32.91

 

32.91

 

32.91

Fall miticide application

   

51.98

51.98

 

51.98

 

51.98

Management costs

48.00

48.00

48.00

48.00

48.00

48.00

48.00

48.00

Harvesting: pick/spot/roadside & haul, and canker decontamination

918.90

918.90

952.71

952.71

1,145.64

1,073.48

1,145.64

1,073.48

Field inspection for citrus greening (4 inspections @ $25.99)

103.96

103.96

103.96

103.96

103.96

103.96

103.96

103.96

Irrigation, microsprinkler system, diesel fuel

93.16

93.16

93.16

93.16

93.16

93.16

93.16

93.16

Fertilizer materials

380.88

380.88

310.60

310.60

386.68

283.12

386.68

283.12

Supplemental fertilizer, spray, sprout

120.24

120.24

99.89

99.89

140.28

120.24

140.28

120.24

Herbicide materials

113.65

113.65

68.92

68.92

84.32

84.32

84.32

84.32

Spray/pest management, materials

315.52

315.52

477.74

477.74

282.85

434.37

282.85

434.37

Mandatory citrus canker decontamination costs

31.67

31.67

31.67

31.67

31.67

31.67

31.67

31.67

Interest on operating (cultural) costs

78.70

78.70

93.42

93.42

74.32

85.45

74.32

85.45

Interest on average capital investment

321.22

321.22

321.22

321.22

321.22

321.22

321.22

321.22

Property tax / water management tax / fly protocol coat

61.00

61.00

182.86

182.86

61.00

117.65

61.00

117.65

DOC assessment

88.32

88.32

133.70

133.70

108.72

149.45

108.72

149.45

Total Cost Per Acre

3,244.08

3,244.08

3,800.13

3,800.13

3,432.90

3,687.81

3,432.90

3,687.81

Footnotes

1.

This document is FE802, one of a series of the Food and Resource Economics Department, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida. Original publication date June 2009. Reviewed September 2012. Visit the EDIS website at http://edis.ifas.ufl.edu.

2.

Mohammad Rahmani, coordinator of economic analysis, and Alan W. Hodges, Extension scientist, Food and Resource Economics Department, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL 32611.

The use of trade names in this publication is solely for the purpose of providing specific information. UF/IFAS does not guarantee or warranty the products named, and references to them in this publication do not signify our approval to the exclusion of other products of suitable composition.


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 UF/IFAS Extension publications, contact your county's UF/IFAS Extension office.

U.S. Department of Agriculture, UF/IFAS Extension Service, University of Florida, IFAS, Florida A & M University Cooperative Extension Program, and Boards of County Commissioners Cooperating. Nick T. Place, dean for UF/IFAS Extension.