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Publication #HS1223

Orchard Establishment Budget for Peaches and Nectarines in Florida1

Mercy Olmstead and Kim Morgan2

Overview

Stone fruit production in Florida, specifically peaches (Prunus persica L.), has increased in acreage since the mid-2000s, predominantly driven by the desire to diversify agricultural operations. Although the National Agriculture Statistics Service does not keep annual production and acreage statistics for peaches because of the industry's small size, a recent poll revealed just over 670 acres in Florida, with about 700 unreported acres (Table 1) (Morgan and Olmstead 2013). Statewide, current estimates of harvested peaches are approximately 4.5 million pounds, with a value of more than $6 million. Florida growers can take advantage of an early market window in which they produce the first domestic peach of the calendar year, commanding a high price per pound. The future of peach production in the state is very positive, and many growers continue to plant new orchards.

Production Practices

Peaches are predominantly planted in an open-vase system, and a common group of varieties are used in commercial orchards planted in Central and South Central Florida. These include 'UFSun', 'UFBest', 'TropicBeauty', 'UFBeauty', and 'UFOne'. In addition, a new variety, 'UFGem', is showing excellent promise in trials and will be released in 2014. Several other varieties are grown in North and North Central Florida for U-pick operations and farm stand sales. See Florida Peach and Nectarine Varieties (http://edis.ifas.ufl.edu/mg374) for more information. Plant spacing and density vary widely (Table 2) and may be determined by the previous infrastructure of a former crop. These tree densities affect the total cost per acre because practices like pruning, fruit thinning, and harvest are dependent upon hand labor. Pruning is conducted twice a year—once during the summer and once during the winter months—to thin fruiting wood and maintain tree shape. Once the fruit set, fruit must be thinned to 6–9 inches apart to achieve marketable fruit size. Peach and nectarine bloom is not uniform in timing, and two or three passes must be made to adequately achieve the ideal crop load. Similarly, peach fruit are not harvested entirely at one time, and many orchards must be picked over three or four times, 3–7 days apart. Spray program options for various insects, weeds, and diseases are available in an annually updated publication available online (http://www.ent.uga.edu/peach/PeachGuide.pdf).

Enterprise Planning Budgets

To assist Florida peach growers with the decision-making process, planning budgets for years 1–4 were developed (Tables 3–6) with input from UF/IFAS specialists, industry experts, and select Central and South Florida peach orchard managers. These planning budgets detail per-acre peach orchard variable, fixed, and total costs, and are intended to serve as benchmark figures that could be incurred by managers of the peach varieties described above. Production input prices are based on 2013 cost lists provided by manufacturers and current peach orchard managers. Estimated returns per acre are based on reported average farm gate values received by Florida peach growers during the market window of late April through early June. Marketing costs and marketable fruit percentages may vary widely across operations depending on variety, harvest conditions, marketing channels, and packing shed options. A summary table (Table 3; Figure 1) is provided to highlight variable, fixed, and total costs per acre; total costs per pound; and expected returns above variable and total costs on a per-acre basis for each of years 1–4.

The planning budget for year 1 (Table 4) includes orchard establishment purchase of 145 trees/acre, (planted 15' between trees x 20' between rows) at an estimated $12 per tree for the Florida varieties, and planting costs of $76/acre. Year 1 variable and fixed costs are $4,697 and $723 per acre, respectively. While the trees will produce fruit, marketable yield is assumed to be zero pounds, resulting in estimated year 1 returns above total costs equal to a loss of -$5,420 per acre.

Year 2 variable costs are estimated at $3,845 per acre and include tree replacement and replanting costs of 5% per acre (Table 5). Estimated fixed costs for year 2 are $831.75 per acre and include a management charge equivalent to 5% of gross receipts. Estimated year 2 average yield is 1,740 pounds per acre with a 75% estimated market yield, and farm gate value is assumed to be $1.25 per pound of marketable fruit. For year 2, total costs per acre are $4,677, netting an estimated cost of $2.69 per market pound of peach. Year 2 returns above variable and total costs are loss estimates of -$1,670 and -$2,502 per acre, respectively.

Year 3 estimated yields are expected to reach 5,800 pounds and return revenues of $7,250 per acre of market-quality fruit (Table 6). As in year 2, estimated variable costs associated with a 5% tree replacement and replanting, a 75% marketable yield, and farm gate value of $1.25 per acre are included in both years 3 and 4. For year 3, estimated variable and fixed costs per acre are $4,541 and $1,086, respectively. Total year 3 costs are $5,627 per acre, with an estimated cost of $0.97 per market pound of peach. Year 3 estimated returns above variable and total costs are gains of $2,709 and $1,624 per acre, respectively.

By year 4, Florida peach varieties are expected to reach full production capacity, estimated at 8,700 pounds per acre, or 60 pounds per tree (Table 7). Currently, peach breeders expect Florida varieties to maintain full production yields throughout years 4–10 if properly maintained and under normal environmental conditions. Year 4 revenues are expected to reach $10,875 per acre of marketable peaches, with a total per-acre cost of $0.72 per pound. As in years 2 and 3, management charges of 5% of gross receipts are included in year 4, generating additional fixed costs of $543.75 per acre. For year 4, estimated variable and fixed costs per acre are $5,031 and $1,267, respectively, summing to an estimated total cost of $6,298 per acre. Year 4 estimated returns above variable and fixed costs are gains of $5,844 and $4,577 per acre, respectively.

Because reported farm gate values vary greatly depending primarily on harvest date as well as market channel, a sensitivity analysis is provided (Table 8; Figure 2). In Table 8, returns above total costs per acre are provided across a matrix of seven feasible farm gate value and five commercial marketable yield scenarios. Using the year 4 costs and returns estimates as an example, at farm gate values equal to $1.25 per pound of peaches, estimated marketable commercial yield for year 4 is 6,525 pounds per acre, which generates returns to total costs of $1,859 per acre.

Additional Resources

An interactive Excel spreadsheet for each of the four production years is available free online at http://hos.ufl.edu/sites/default/files/faculty/maolmstead/documents/PeachBudgetWorksheets24Jun13.xlsx. This interactive budget allows individual orchard managers to calculate final revenue estimates by adjusting the values of production and market yields, average farm gate price, input application rate and cost, and fixed investment costs, such as irrigation, facilities, equipment, and returns, to match their real-time operational conditions. All changes made in year 4 of the planning budget generate updated "what-if" and summary tables in the associated tabs, which provide the orchard manager with real-time comparisons resulting from any changes to estimated yields, revenues, or input costs.

For further information about stone fruit production in Florida, please refer to Training and Pruning Florida Peaches, Nectarines, and Plums (http://edis.ifas.ufl.edu/hs365) and Alternative Opportunities for Small Farms: Peach and Nectarine Production Review (http://edis.ifas.ufl.edu/ac018), or contact your local UF/IFAS Extension specialists.

References

Morgan, K., and M. Olmstead. 2013. "A Diversification Strategy for Perennial Horticulture in Florida." HortTechnology (forthcoming).

USDA (U.S. Department of Agriculture). 2007. "Specified Fruits and Nuts by Acres: 2007 and 2002." Census of Agriculture. Accessed April 30 2013. http://www.agcensus.usda.gov/Publications/2007/Full_Report/Volume_1,_Chapter_1_State_Level/Florida/st12_1_035_036.pdf.

Figure 1. 

Florida peach returns to total costs ($/acre) under varying farm gate values and marketable yield scenarios (Source: Morgan and Olmstead 2013)


[Click thumbnail to enlarge.]

Figure 2. 

Florida peach planning budget summary: Years 1-4 estimated returns and cost ($/acre) above variable, fixed, and total costs (Source: Morgan and Olmstead 2013)


[Click thumbnail to enlarge.]

Tables

Table 1. 

Comparison of orchard acreage and farm number between 2007 and 2011

2011 Florida Peach Grower Survey

2007 Florida USDA-NASS Agricultural Census

Change in acreage

No. of farms

No. of acres

No. of farms

No. of acres

%

24

630

145

234

+169%

(Source: Morgan and Olmstead 2013; USDA 2007)

Table 2. 

Various tree densities per acre for Florida orchards

Spacing between trees

Spacing between rows

Total trees/acre

15

25

117

15

20

145

10

20

218

10

15

290

Table 3. 

Florida peach planning budget summary: Years 1–4 estimated costs and returns

Year

Variable costs (VC)

Fixed costs (FC)

Total costs (TC)

Total costs (TC)

Returns above VC

Returns above TC

 

Per acre

Per acre

Per acre

Per lb.

Per acre

Per acre

 

$/acre

$/acre

$/acre

$/lb.

$/acre

$/acre

Year one

$4,509

$723

$5,232

 

-$4,509

-$5,232

Year two

$3,657

$832

$4,489

$2.58

-$1,482

-$2,314

Year three

$4,353

$1,086

$5,438

$0.94

$2,897

$1,812

Year four

$4,843

$1,267

$6,110

$0.70

$6,032

$4,765

Table 4. 

Florida peach planning budget, year 1 establishment estimated costs and returns (145 trees/acre)

Items

 

Application(s)

Unit

Quantity

Price

$/unit

Amount

REVENUE

 

Peaches

 

lb/acre

0

$1.25

per lb

$0.00

     

% packout

0.75

     

VARIABLE COSTS

Lime (dolomite)

 

1

ton/acre

1.5

$28.00

per ton

$42.00

Fertilizer

             
 

Fert 12-4-8

1

lb/acre

30

$0.21

per lb

$6.42

Herbicides

           
 

Gramoxone Inteon®

1

pt/acre

2.2

$2.69

per pt

$5.91

 

Glyphosate (Roundup®)

4

qt/acre

1

$14.50

per gal

$58.00

 

Chateau® WDG

1

oz/acre

9

$5.13

per oz

$46.13

Insecticides

             
 

Dormant Oil

2

gal/acre

3

$6.50

per gal

$39.00

 

Lorsban® 4E

1

pt/acre

4.5

$4.38

per pt

$19.69

 

Imidan® 70 WSB

1

lb/acre

3

$10.60

per lb

$31.80

 

Asana® XL

1

oz/acre

12

$0.43

per oz

$5.16

 

Baythroid® XL

1

oz/acre

2

$1.17

per oz

$2.34

 

Provado®

1

oz/acre

6

$0.70

per oz

$4.17

 

Sevin®

1

lb/acre

2.5

$5.00

per lb

$12.50

 

Success® or Entrust®

1.5

oz/acre

0.075

$550.00

per lb

$61.88

 

SpinTor®

1

oz/acre

6

$5.04

per oz

$30.23

Fungicides

             
 

Telone® II

1

gal/acre

9

$17.00

per gal

$153.00

 

Captan 80WDG

0

lb/acre

18

$4.49

per lb

$0.00

 

Bravo Weather Stik®

0

pt/acre

8

$3.44

per pt

$0.00

 

Pristine®

0

oz/acre

14.5

$2.75

per oz

$0.00

 

Elite® 50WP

0

oz/acre

8

$3.27

per oz

$0.00

 

Abound®

3

oz/acre

10

$1.79

per oz

$53.67

 

Kocide® 3000

2

lb/acre

3

$5.80

per lb

$34.80

 

Cuprofix®

1

lb/acre

2.5

$3.52

per lb

$8.80

 

Sulfur

5

lb/acre

10.5

$1.05

per lb

$55.13

Trees

 

1

trees/acre

145

$12.00

per tree

$1,740.00

Irrigation, microsprinklers

     

1

$30.00

per acre

$30.00

Fuel, oil, grease

     

1

$25.00

per acre

$25.00

Repairs

     

1

$50.00

per acre

$50.00

Miscellaneous (soil test, hand tools, etc.)

 

1

   

$50.00

per acre

$50.00

Bee rental & maintenance

 

1

   

$0.00

per acre

$0.00

Hired labor

             
 

Planting

8

hours/acre

1

$9.50

per hour

$76.00

 

Harrowing

4

trip/acre

1

$12.00

per trip

$48.00

 

Mowing

5

trip/acre

1

$12.00

per trip

$60.00

 

Chemical applications

10

trip/acre

1

$12.00

per trip

$120.00

 

Harvesting

0

lb/acre

1

$0.05

$/lb

$0.00

 

Pruning

2

#/tree

145

$4.50

per tree

$1,305.00

Marketing costs

 

Custom packing (fludioxinil/wax/cooling)

0

lb/acre

0

$0.09

per lb

$0.00

 

Brokerage

0

lb/acre

0

$0.03

per lb

$0.00

 

Packing operation costs

0

lb/acre

0

$0.02

per lb

$0.00

 

Interest on operating capital1

 

12 months

4,349

$0.08

 

$333.97

TOTAL VARIABLE COSTS

per acre

$4,508.59

FIXED COSTS

             

Operator labor charge2

 

1

hours/acre

10

$7.50

per hour

$75.00

Machine & equipment charge3

 

20

acres

30000

$0.02

per acre

$30.00

Irrigation charge4

     

1

$308.00

per acre

$308.00

Land charge

 

1

rent/acre

1

$85.00

per acre

$85.00

Management charge

 

5% gross receipts

 

0

$0.05

 

$0.00

Facilities & equipment5

 

20

acres

30000

$0.15

per acre

$225.00

TOTAL FIXED COSTS

per acre

$723.00

TOTAL COSTS (PER ACRE)

per acre

$5,231.59

TOTAL COSTS (PER POUND)

per lb

0

RETURN ABOVE VARIABLE COSTS

per acre

-$4,508.59

RETURN ABOVE TOTAL COSTS

per acre

-$5,231.91

1Interest on all variable costs for 12 months at 8% interest rate.

2Hired and seasonal labor is considered a variable cost; salaried and operator/unpaid family labor are considered a fixed cost.

3Machine and equipment charge set at 2% of total investment of $30,000 shared across total number of acres (20).

4Capital recovery charge of $308 included to represent annual ownership costs of these items over 7-year period, where microsprinkler system valued at $1,500 per acre expensed at 10% annually for 7 years.

5Facilities and equipment valued at $30,000 expensed at 15% annually for 20 acres. Includes depreciation, interest, insurance, and repairs. Ex: ($30,000 x 0.15)/20 acres = $225

Table 5. 

Florida peach planning budget, year 2 estimated costs and returns (145 trees/acre)

Items

 

Application(s)

Unit

Quantity

Price

$/unit

Amount

REVENUE

 

Peaches

 

lb/acre

1740

$1.25

per lb

$2,175.00

     

% packout

0.75

     

VARIABLE COSTS

Lime (dolomite)

 

1

ton/acre

1.5

$28.00

per ton

$42.00

Fertilizer

             
 

Fert 12-4-8 or 10-10-10

1

lb/acre

60

$0.21

per lb

$12.84

Herbicides

             
 

Glyphosate (Roundup®)

4

qt/acre

1

$14.50

per gal

$58.00

 

Gramoxone Inteon®

1

pt/acre

2.2

$2.69

per pt

$5.91

 

Chateau® WDG

1

oz/acre

9

$5.13

per oz

$46.13

Insecticides

             
 

Dormant Oil

2

gal/acre

3

$6.50

per gal

$39.00

 

Lorsban® 4E

1

pt/acre

4.5

$4.38

per pt

$19.69

 

Imidan® 70 WSB

1

lb/acre

3

$10.60

per lb

$31.80

 

Asana® XL

1

oz/acre

12

$0.43

per oz

$5.16

 

Baythroid® XL

1

oz/acre

2

$1.17

per oz

$2.34

 

Provado®

1

oz/acre

6

$0.70

per oz

$4.17

 

Sevin®

1

lb/acre

2.5

$5.00

per lb

$12.50

 

Success® or Entrust®

1.5

oz/acre

0.075

$550.00

per lb

$61.88

 

SpinTor®

1

oz/acre

6

$5.04

per oz

$30.23

Fungicides

             
 

Telone® II

1

gal/acre

9

$17.00

per gall

$153.00

 

Captan 80WDG

0

lb/acre

18

$4.49

per lb

$0.00

 

Bravo Weather Stik®

0

pt/acre

8

$3.44

per pt

$0.00

 

Pristine®

0

oz/acre

14.5

$2.75

per oz

$0.00

 

Elite® 50WP

0

oz/acre

8

$3.27

per oz

$0.00

 

Abound®

3

oz/acre

10

$1.79

per oz

$53.67

 

Kocide® 3000

2

lb/acre

3

$5.80

per lb

$34.80

 

Cuprofix®

1

lb/acre

2.5

$3.52

per lb

$8.80

 

Sulfur

5

lb/acre

10.5

$1.05

per lb

$55.13

Trees

 

1

trees/acre

7.25

$12.00

per tree

$87.00

Irrigation, drip

     

1

$30.00

per acre

$30.00

Fuel, oil, grease

     

1

$25.00

per acre

$25.00

Repairs

     

1

$50.00

per acre

$50.00

Miscellaneous (soil test, hand tools, etc.)

 

1

   

$50.00

per acre

$50.00

Bee rental & maintenance

 

1

   

$0.00

per acre

$0.00

Hired labor

             
 

Planting

1

hours/acre

1

$9.50

per hour

$9.50

 

Harrowing

4

trip/acre

1

$12.00

per trip

$48.00

 

Mowing

5

trip/acre

1

$12.00

per trip

$60.00

 

Chemical applications

10

trip/acre

1

$12.00

per trip

$120.00

 

Harvesting

1740

lb/acre

1

$0.05

$/lb

$87.00

 

Thinning

1

#/tree

145

$4.50

per tree

$652.50

 

Pruning

2

#/tree

145

$4.50

per tree

$1,305.00

Marketing costs

 

Custom packing (fludioxinil/wax/cooling)

1740

lb/acre

1305

$0.09

per lb

$117.45

 

Brokerage

1740

lb/acre

1305

$0.03

per lb

$41.76

 

Packing operation costs

1740

lb/acre

1305

$0.02

per lb

$26.10

 

Interest on operating capital1

 

12 months

3,560

$0.08

 

$270.91

TOTAL VARIABLE COSTS

per acre

$3,657.26

FIXED COSTS

Operator labor charge2

 

1

hours/acre

10

$7.50

per hour

$75.00

Machine & equipment charge3

 

20

acres

30000

$0.02

per acre

$30.00

Irrigation charge4

     

1

$308.00

per acre

$308.00

Land charge

 

1

rent/acre

1

$85.00

per acre

$85.00

Management charge

 

5% gross receipts

 

2175

$0.05

 

$108.75

Facilities & equipment5

 

20

acres

30000

$0.15

per acre

$225.00

TOTAL FIXED COSTS

per acre

$831.75

TOTAL COSTS (PER ACRE)

per acre

$4,489.01

TOTAL COSTS (PER POUND)

per lb

$2.58

RETURN ABOVE VARIABLE COSTS

per acre

-$1,482.26

RETURN ABOVE TOTAL COSTS

per acre

-$2,314.01

1Interest on all variable costs for 12 months at 8% interest rate.

3Machine and equipment charge set at of 2% of total investment of $30,000 shared across total number of acres (20).

4Capital recovery charge of $308 included to represent annual ownership costs of these items over 7-year period, where microsprinkler system valued at $1,500 per acre expensed at 10% annually for 7 years.

5Facilities and equipment valued at $30,000 expensed at 15% annually for 20 acres. Includes depreciation, interest, insurance, and repairs. Ex: ($30,000 x 0.15)/20 acres = $225

Table 6. 

Florida peach planning budget, year 3 estimated costs and returns (145 trees/acre)

Items

 

Application(s)

Unit

Quantity

Price

$/unit

Amount

REVENUE

 

Peaches

 

lb/acre

5800

$1.25

per lb

$7,250.00

     

% packout

0.75

     

VARIABLE COSTS

Lime (dolomite)

 

1

ton/acre

1.5

$28.00

per ton

$42.00

Fertilizer

             
 

Fert 12-4-8 or 10-10-10

1

lb/acre

100

$0.21

per lb

$21.40

 

Herbicides

           
 

Gramoxone Inteon®

1

pt/acre

2.2

$2.69

per pt

$5.91

 

Glyphosate (Roundup®)

4

qt/acre

1

$14.50

per gal

$58.00

 

Chateau® WDG

1

oz/acre

9

$5.13

per oz

$46.13

 

Insecticides

           
 

Dormant Oil

2

gal/acre

3

$6.50

per gal

$39.00

 

Lorsban® 4E

1

pt/acre

4.5

$4.38

per pt

$19.69

 

Imidan® 70 WSB

1

lb/acre

3

$10.60

per lb

$31.80

 

Asana® XL

1

oz/acre

12

$0.43

per oz

$5.16

 

Baythroid® XL

1

oz/acre

2

$1.17

per oz

$2.34

 

Provado®

1

oz/acre

6

$0.70

per oz

$4.17

 

Sevin®

1

lb/acre

2.5

$5.00

per lb

$12.50

 

Success® or Entrust®

1.5

oz/acre

0.075

$550.00

per lb

$61.88

 

SpinTor®

1

oz/acre

6

$5.04

per oz

$30.23

Fungicides

             
 

Telone® II

1

gal/acre

9

$17.00

per gall

$153.00

 

Captan 80WDG

0

lb/acre

18

$4.49

per lb

$0.00

 

Bravo Weather Stik®

0

pt/acre

8

$3.44

per pt

$0.00

 

Pristine®

0

oz/acre

14.5

$2.75

per oz

$0.00

 

Elite® 50WP

0

oz/acre

8

$3.27

per oz

$0.00

 

Abound®

3

oz/acre

10

$1.79

per oz

$53.67

 

Kocide® 3000

2

lb/acre

3

$5.80

per lb

$34.80

 

Cuprofix®

1

lb/acre

2.5

$3.52

per lb

$8.80

 

Sulfur

5

lb/acre

10.5

$1.05

per lb

$55.13

Trees

 

1

trees/acre

7.25

$12.00

per tree

$87.00

Irrigation, drip

     

1

$30.00

per acre

$30.00

Fuel, oil, grease

     

1

$25.00

per acre

$25.00

Repairs

     

1

$50.00

per acre

$50.00

Miscellaneous (soil test, hand tools, etc.)

 

1

   

$50.00

per acre

$50.00

Bee rental & maintenance

 

1

   

$0.00

per acre

$0.00

Hired labor

             
 

Planting

1

hours/acre

1

$9.50

per hour

$9.50

 

Harrowing

4

trip/acre

1

$12.00

per trip

$48.00

 

Mowing

5

trip/acre

1

$12.00

per trip

$60.00

 

Chemical applications

10

trip/acre

1

$12.00

per trip

$120.00

 

Harvesting

5800

lb/acre

1

$0.05

$/lb

$290.00

 

Thinning

1

trees/acre

145

$4.50

per tree

$652.50

 

Pruning

2

#/tree

145

$4.50

per tree

$1,305.00

Marketing costs

 

Custom packing (fludioxinil/wax/cooling)

5800

lb/acre

4350

$0.09

per lb

$391.50

 

Brokerage

5800

lb/acre

4350

$0.03

per lb

$139.20

 

Packing operation costs

5800

lb/acre

4350

$0.02

per lb

$87.00

 

Interest on operating capital1

 

12 months

4,204

$0.08

 

$332.42

TOTAL VARIABLE COSTS

per acre

$4,352.72

FIXED COSTS

Operator labor charge2

 

1

hours/acre

10

$7.50

per hour

$75.00

Machine & equipment charge3

 

20

acres

30000

$0.02

per acre

$30.00

Irrigation charge4

     

1

$308.00

per acre

$308.00

Land charge

 

1

rent/acre

1

$85.00

per acre

$85.00

Management charge

 

5% gross receipts

 

7250

$0.05

 

$362.50

Facilities & equipment5

 

20

acres

30000

$0.15

per acre

$225.00

TOTAL FIXED COSTS

per acre

$1,085.50

TOTAL COSTS (PER ACRE)

per acre

$5,438.22

TOTAL COSTS (PER POUND)

per lb

$0.97

RETURN ABOVE VARIABLE COSTS

per acre

$2,897.28

RETURN ABOVE TOTAL COSTS

per acre

$1,811.78

1Interest on all variable costs for 12 months at 8% interest rate.

3Machine and equipment charge set at of 2% of total investment of $30,000 shared across total number of acres (20).

4Capital recovery charge of $308 included to represent annual ownership costs of these items over 7-year period, where microsprinkler system valued at $1,500 per acre expensed at 10% annually for 7 years.

5Facilities and equipment valued at $30,000 expensed at 15% annually for 20 acres. Includes depreciation, interest, insurance, and repairs. Ex: ($30,000 x 0.15)/20 acres = $22

Table 7. 

Florida peach planning budget, year 4 estimated costs and returns (145 trees/acre)

Items

 

Application(s)

Unit

Quantity

Price

$/unit

Amount

REVENUE

 

Peaches

 

lb/acre

8700

$1.25

per lb

$10,875.00

     

% packout

0.75

     

VARIABLE COSTS

Lime (dolomite)

 

1

ton/acre

1.5

$28.00

per ton

$42.00

Fertilizer

             
 

Fert 12-4-8 or 10-10-10

1

lb/acre

100

$0.21

per lb

$21.40

 

Herbicides

           
 

Gramoxone Inteon®

1

pt/acre

2.2

$2.69

per pt

$5.91

 

Glyphosate (Roundup®)

4

qt/acre

1

$14.50

per gal

$58.00

 

Chateau® WDG

1

oz/acre

9

$5.13

per oz

$46.13

 

Insecticides

           
 

Dormant Oil

2

gal/acre

3

$6.50

per gal

$39.00

 

Lorsban® 4E

1

pt/acre

4.5

$4.38

per pt

$19.69

 

Imidan 70 WSB

1

lb/acre

3

$10.60

per lb

$31.80

 

Asana® XL

1

oz/acre

12

$0.43

per oz

$5.16

 

Baythroid® XL

1

oz/acre

2

$1.17

per oz

$2.34

 

Provado®

1

oz/acre

6

$0.70

per oz

$4.17

 

Sevin®

1

lb/acre

2.5

$5.00

per lb

$12.50

 

Success® or Entrust®

1.5

oz/acre

0.075

$550.00

per lb

$61.88

 

SpinTor®

1

oz/acre

6

$5.04

per oz

$30.23

Fungicides

             
 

Telone® II

1

gal/acre

9

$17.00

per gall

$153.00

 

Captan 80WDG

0

lb/acre

18

$4.49

per lb

$0.00

 

Bravo Weather Stik®

0

pt/acre

8

$3.44

per pt

$0.00

 

Pristine®

0

oz/acre

14.5

$2.75

per oz

$0.00

 

Elite® 50WP

0

oz/acre

8

$3.27

per oz

$0.00

 

Abound®

3

oz/acre

10

$1.79

per oz

$53.67

 

Kocide® 3000

2

lb/acre

3

$5.80

per lb

$34.80

 

Cuprofix®

1

lb/acre

2.5

$3.52

per lb

$8.80

 

Sulfur

5

lb/acre

10.5

$1.05

per lb

$55.13

Trees

 

1

trees/acre

7.25

$12.00

per tree

$87.00

Irrigation, drip

     

1

$30.00

per acre

$30.00

Fuel, oil, grease

     

1

$25.00

per acre

$25.00

Repairs

     

1

$50.00

per acre

$50.00

Miscellaneous (soil test, hand tools, etc.)

 

1

   

$50.00

per acre

$50.00

Bee rental & maintenance

 

1

   

$0.00

per acre

$0.00

Hired labor

             
 

Planting

1

hours/acre

1

$9.50

per hour

$9.50

 

Harrowing

4

trip/acre

1

$12.00

per trip

$48.00

 

Mowing

5

trip/acre

1

$12.00

per trip

$60.00

 

Chemical applications

10

trip/acre

1

$12.00

per trip

$120.00

 

Harvesting

8700

lb/acre

1

$0.05

$/lb

$435.00

 

Thinning

1

trees/acre

145

$4.50

per tree

$652.50

 

Pruning

2

#/tree

145

$4.50

per tree

$1,305.00

Marketing costs

 

Custom packing (fludioxinil/wax/cooling)

8700

lb/acre

6525

$0.09

per lb

$587.25

 

Brokerage

8700

lb/acre

6525

$0.03

per lb

$208.80

 

Packing operation costs

8700

lb/acre

6525

$0.02

per lb

$130.50

 

Interest on operating capital1

 

12 months

4,658

$0.08

 

$358.73

TOTAL VARIABLE COSTS

per acre

$4,842.88

FIXED COSTS

Operator labor charge2

 

1

hours/acre

10

$7.50

per hour

$75.00

Machine & equipment charge3

 

20

acres

30000

$0.02

per acre

$30.00

Irrigation charge4

     

1

$308.00

per acre

$308.00

Land charge

 

1

rent/acre

1

$85.00

per acre

$85.00

Management charge

 

5% gross receipts

 

10875

$0.05

 

$543.75

Facilities & equipment5

 

20

acres

30000

$0.15

per acre

$225.00

TOTAL FIXED COSTS

per acre

$1,266.75

TOTAL COSTS (PER ACRE)

per acre

$6,109.63

TOTAL COSTS (PER POUND)

per lb

$0.70

RETURN ABOVE VARIABLE COSTS

per acre

$6.032.12

RETURN ABOVE TOTAL COSTS

per acre

$4,765.37

1Interest on all variable costs for 12 months at 8% interest rate.

2Hired and seasonal labor is considered a variable cost; salaried and operator/unpaid family labor are considered a fixed cost.

3Machine and equipment charge set at of 2% of total investment of $30,000 shared across total number of acres (20).

4Capital recovery charge of $308 included to represent annual ownership costs of these items over 7-year period, where microsprinkler system valued at $1,500 per acre expensed at 10% annually for 7 years.

5Facilities and equipment valued at $30,000 expensed at 15% annually for 20 acres. Includes depreciation, interest, insurance, and repairs. Ex: ($30,000 x 0.15)/20 acres = $225

Table 8. 

Florida peach sensitivity analysis: Returns to total costs ($/acre) under varying farm gate values and marketable yield scenarios

Farm gate value ($/lb)

Total marketable commercial yield (lb)

 

5,220

5,873

6,525

7,178

7,830

$0.50

($3,500)

($3,173)

($2,847)

($2,521)

($2,195)

$0.75

($2,195)

($1,705)

($1,216)

($727)

($237)

$1.00

($890)

($237)

$415

$1,068

$1,720

$1.25

$415

$1,231

$2,047

$2,862

$3,678

$1.50

$1,720

$2,699

$3,678

$4,657

$5,635

$1.75

$3,025

$4,167

$5,309

$6,451

$7,593

$2.00

$4,330

$5,635

$6,940

$8,245

$9,550

Footnotes

1.

This document is HS1223, one of a series of the Horticultural Sciences Department, UF/IFAS Extension. Original publication date July 2013. Visit the EDIS website at http://edis.ifas.ufl.edu.

2.

Mercy Olmstead, assistant professor, Horticultural Sciences Department, and Kim Morgan, assistant professor, Mississippi State University; UF/IFAS Extension, Gainesville, FL 32611.


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.