Understanding Investment Analysis for Farm Management

Investment decisions are among the most important decisions growers make. In many cases, those investments are in capital assets such as establishing a new orchard or purchasing a new piece of equipment. The process for evaluating those investments is called investment analysis or capital budgeting. This 4-page fact sheet written by Julio Cruz and Ariel Singerman and published by the UF/IFAS Food and Resource Economics Department reviews net present value and the internal rate of return, the two main criteria for decision making when evaluating a decision to invest in a capital asset.
http://edis.ifas.ufl.edu/fe1060

Children’s Citrus Activity: Citrus Counting

A University of Florida orange grove in Lake Alfred, FL

Florida is well known for its citrus industry, valued at over eight billion dollars, and is one of the top citrus-producing states in the United States. This new one-page children’s activity sheet about Florida citrus includes an activity for students learning to count and match. Written by Jamie D. Burrow and Ariel Singerman and published by the UF/IFAS Extension 4-H Youth Development Program.
http://edis.ifas.ufl.edu/4h402

Cost of Producing Processed Oranges in Southwest Florida in 2017/18

Orange grove.

This 4-page fact sheet written by Ariel Singerman and published by the UF/IFAS Food and Resource Economics Department presents a summary of the 2017/18 costs of production for processed oranges grown in southwest Florida. Typical users of these estimates include growers and consultants, who use them as a benchmark; property appraisers, who use them to compute the taxes for property owners; and researchers, who use the estimates to evaluate the economic feasibility of potential new technologies.
http://edis.ifas.ufl.edu/fe1056

Crop Insurance Policies Available to Blueberry Growers in Florida

Blueberry field.

The main source of risk in crop production stems from the unpredictable nature of weather, pests, diseases, etc. By purchasing crop insurance, the farmer transfers part of the risk to an insurance company in exchange for paying a premium (which is the cost of purchasing crop insurance). In this 6-page fact sheet published by the UF/IFAS Food and Resource Economics Department, authors Robert Ranieri and Ariel Singerman describe and provide examples for the two main crop insurance policies available for blueberry farmers in Florida.
http://edis.ifas.ufl.edu/fe1054

The Economics of Planting New Citrus Groves in Florida in the Era of HLB

Figure 5. Color inversion and oblong fruit shape caused by HLB infection. Credits: Megan M. Dewdney, UF/IFAS CREC
Citrus greening, or huanglongbing (HLB), is a bacterial disease that affects citrus trees’ vascular systems, limiting nutrient uptake. As trees become increasingly affected by the disease, they suffer premature fruit drop, the fruit harvested is smaller and misshapen, and the juice quality is compromised, all resulting in lower yield. To this date there is no cure or successful management strategy to deal with HLB. This 8-page fact sheet written by Ariel Singerman, Marina Burani-Arouca, and Stephen H. Futch and published by the UF/IFAS Food and Resource Economics Department summarizes the results of an analysis of three tree densities under different production and market conditions to determine which density is most profitable.
http://edis.ifas.ufl.edu/fe1050

Cost of Production for Processed Oranges in Southwest Florida, 2016/17

oranges on the tree with orchard in background

This 5-page fact sheet written by Ariel Singerman and published by the UF/IFAS Food and Resource Economics Department summarizes the cost of production per acre for processed oranges grown in southwest Florida during the 2016/17 season. Typical users of the estimates include growers and consultants, who use them as a benchmark; property appraisers, who use them to compute the taxes for property owners; and researchers, who use the estimates to evaluate the economic feasibility of potential new technologies.
http://edis.ifas.ufl.edu/fe1038

Cost of Production for Fresh Market Grapefruit Grown in Indian River, Florida 2016/17

Grapefruit.

This 5-page fact sheet written by Ariel Singerman and published by the UF/IFAS Food and Resource Economics Department presents the cost of production per acre for growing fresh grapefruit in the Indian River region during 2016/17. Typical users of the estimates include growers and consultants, who use them as a benchmark; property appraisers, who use them to compute the taxes for property owners; and researchers, who use the estimates to evaluate the economic feasibility of potential new technologies.
http://edis.ifas.ufl.edu/fe1037

Establishment and Production Costs for Peach Orchards in Florida: Enterprise Budget and Profitability Analysis

peaches

While the Florida peach industry is small, it has experienced significant growth in recent years. This 20-page article written by Ariel Singerman, Marina Burani-Arouca, and Mercy Olmstead and published by the Food and Resource Economics Department summarizes the establishment and production costs as well as the potential profitability of a peach orchard in Florida. It includes an enterprise budget, estimates of potential revenue and undiscounted cash flows for different combinations of prices and yields, and an investment analysis. The information in this article should be relevant to both current and potential Florida peach growers.
http://edis.ifas.ufl.edu/fe1016

Cost of Production for Fresh Grapefruit Grown in Indian River, 2015/16

Grapefruit.

This 4-page article written by Ariel Singerman and published by the Food and Resource Economics Department presents the cost of production per acre for growing fresh grapefruit in the Indian River region during 2015/2016, based on a survey of growers conducted at the Indian River Citrus League production committee meeting in mid-July 2016. The cost estimates do not represent any individual operation; rather, their purpose is to serve as a benchmark for the industry. Typical users of these estimates include growers, consultants, property appraisers, and researchers.
http://edis.ifas.ufl.edu/fe1011

Evolution of Citrus Disease Management Programs and Their Economic Implications: The Case of Florida’s Citrus Industry

lemons on the tree at the MFREC

New exotic diseases (citrus canker, HLB, and citrus black spot) have sharply increased the real cost of production of citrus in Florida. Growers have been applying different management strategies, and more effective treatments are being researched. The costs and benefits of these alternatives will need to be quantified to establish their economic feasibility. This 5-page fact sheet written by Ariel Singerman and Marina Burani-Arouca and published by the Food and Resource Economics Department focuses on the costs of managing exotic citrus diseases as they become endemic or established within a citrus industry, with Florida used as an example. The steep increase in the real cost of production of citrus in Florida from 2003/04 to 2014/15 provides evidence that managing endemic exotic diseases is very costly for growers, even without taking into account the effect those diseases have on yields. Therefore, governmental policies focused on preventing the introduction of additional exotic diseases would be highly beneficial for citrus growers and the Florida citrus industry as a whole.
edis.ifas.ufl.edu/fe915

Cost of Production for Processed Oranges Grown in Southwest Florida, 2015/16

oranges on the tree with orchard in background

This 4-page fact sheet written by Ariel Singerman and published by the Department of Food and Resource Economics presents the cost of production per acre for processed oranges in southwest Florida during 2015/16. Thirteen growers participated in the survey and provided annual, per-acre costs by program for a “typical” irrigated, mature grove (10+ years old), including resets. The number of acres managed by their combined operations accounts for approximately 41,000 acres, of an estimated 257,298 acres devoted to oranges in the area, so the sample represents 16% of the acreage devoted to oranges in that region. Typical users of the estimates in this publication include growers, consultants, property appraisers, and researchers.
http://edis.ifas.ufl.edu/fe1007

Cost of Production for Processed Oranges Grown in Central Florida (Ridge), 2015/16

Orange grove.

This 4-page fact sheet written by Ariel Singerman and published by the Department of Food and Resource Economics presents the cost of production per acre for processed oranges in central Florida during 2015/16. Five growers participated in the survey and provided annual, per-acre costs by program for a “typical” irrigated, mature grove (10+ years old), including resets. The number of acres managed by their combined operations accounts for approximately 29,000 acres, of an estimated 137,154 acres devoted to oranges in the area, so the sample represents 21% of the acreage devoted to oranges in that region. Typical users of the estimates in this publication include growers, consultants, property appraisers, and researchers.
http://edis.ifas.ufl.edu/fe1006

Establishment and Production Costs for Southern Highbush Blueberry Orchards in Florida: Enterprise Budget and Profitability Analysis

Blueberry field.

The United States is the world’s largest producer of blueberries. Florida’s blueberry production represents a small fraction of total US production, but blueberries are nevertheless an important and valuable crop in the state because Florida growers benefit from the nation’s earliest market window. In fact, the average price for blueberries received by growers in Florida during the last three years was 2.5 times the US average.

This 15-page fact sheet written by Ariel Singerman, Marina Burani-Arouca, Jeffrey G. Williamson, and Gary K. England, and published by the UF Department of Food and Resource Economics provides a summary of the enterprise budget developed for highbush blueberry production in Florida. The budget represents a typical operation and serves as an economic benchmark for growers, providing estimates of expenses and potential estimates of revenue and profit for a blueberry crop to help current and potential blueberry growers make informed decisions about blueberry production.
http://edis.ifas.ufl.edu/fe1002

Harvesting Charges for Florida Citrus: Picking, Roadsiding, and Hauling, 2015/16

freshpicked oranges in foreground of packing facility

A survey of Florida citrus harvesters was conducted in July 2016 to collect data and estimate the harvesting charges to Florida citrus growers during the 2015/16 season. This 5-page fact sheet written by Ariel Singermam, Marina Burani-Arouca, and Stephen H. Futch and published by the UF Department of Food and Resource Economics presents the results of the survey, summarizing the harvesting charges for citrus during the 2015/16 season and documenting the changes in harvesting costs as the impact of HLB increases across the state. The estimates presented provide the basis for computing on-tree prices from delivered-in prices, thus allowing the computation of the change in citrus growers’ economic returns as the industry adapts to remain profitable.
http://edis.ifas.ufl.edu/fe1005

Planting and Annual Cultural Maintenance Costs for Reset-Replacement Trees in a Florida Citrus Grove in 2016

edis pic

Replacement of diseased, unproductive or dead trees is an important part of the cultural program for citrus groves. This five-page fact sheet uses prices and productivity rates collected through a telephone survey in May 2016 to analyze the different preferred management and reset practices. Written by Marina Burani-Arouca, Stephen H. Futch, and Ariel Singerman and published by the Food and Resource Economics Department.
http://edis.ifas.ufl.edu/fe995

2014/15 Average Packing Charges for Florida Fresh Citrus

freshpicked oranges in foreground of packing facility

A survey of Florida fresh citrus packers was conducted in April 2015 to collect data on their packing charges during the 2014/15 season. A total of sixteen packinghouses participated in the survey, seven from the Interior region and nine from the Indian River region. The average of their responses was computed to obtain the estimates presented in this 4-page fact sheet was written by Ariel Singerman, and published by the UF Department of Food and Resource Economics, March 2016.
http://edis.ifas.ufl.edu/fe989

Cost of Production for Processed Oranges in Central Florida (Ridge), 2014/15

oranges on the tree with orchard in background
UF/IFAS researchers collected data from five growers to estimate the cost of production per acre for processed oranges in central Florida during 2014/15. The cost estimates in this 4-page fact sheet written by Ariel Singerman and published by the Food and Resource Economics Department do not represent any individual operation. Instead, their purpose is to serve as a benchmark for the Florida citrus industry. Typical users of these estimates include growers, consultants, property appraisers, and researchers.
http://edis.ifas.ufl.edu/fe985

Cost of Production for Fresh Grapefruit in East Florida (Indian River), 2014/15

Orange grove.
This 4-page article written by Ariel Singerman and published by the Food and Resource Economics Department presents the cost of production per acre for growing fresh grapefruit in the Indian River region during 2014/15, based on a survey of growers conducted at the Indian River Citrus League production committee meeting in March 2015. The cost estimates do not represent any individual operation; rather, their purpose is to serve as a benchmark for the industry. Typical users of these estimates include growers, consultants, property appraisers, and researchers.
edis.ifas.ufl.edu/FE984

Impact of Citrus Greening on Citrus Operations in Florida

greening

Florida is the largest orange-producing state in the United States and the third largest orange producer in the world, but the Florida citrus industry and its position in the global citrus market are being jeopardized by a bacterial disease known as citrus greening or Huanglongbing (HLB). HLB hurts the vascular systems of citrus trees and prevents them from absorbing nutrients. The disease reduces yields, leads to smaller, lower-quality fruit, kills trees, and increases farmers’ production costs. First found in Florida in 2005, HLB has spread rapidly across the state.

As of January 2016, there is neither a cure nor an economically viable option for managing HLB-infected trees. Since HLB was first found in 2005, orange acreage and yield in Florida have decreased by 26% and 42%, respectively. Orange production dropped from 242 million to 104.6 million boxes in 2014. Even though the industry acknowledges that HLB has reached epidemic proportions across the state, estimates of the level of infection and its impact on citrus operations are scarce. This 4-page article written by Ariel Singerman and Pilar Useche and published by the Food and Resource Economics Department presents the first growers’-survey-based estimates of both the level of HLB infection in Florida and the impact of HLB on citrus operations in Florida.
http://edis.ifas.ufl.edu/fe983

2014/15 Picking, Roadsiding, and Hauling Charges for Florida Citrus

Continuous canopy shake and catch citrus mechanical harvesting system.
As Florida’s citrus industry confronts the impacts of Huanglongbing (HLB or citrus greening)–decreasing crop yields and production, lower quality fruit, and increasing cost of production–many growers are facing declining returns. A 2015 survey of twelve Florida citrus harvesters to collect data on harvesting charges during the 2014/15 season revealed that average picking and roadsiding charges for fresh fruit are in most cases lower than those for processed fruit, likely because of the impact of HLB. This 3-page fact sheet written by Ariel Singerman of UF/IFAS Citrus Research and Education Center and published by the Food and Resource Economics Department presents the results of the survey and provides a table summarizing the harvesting charges for citrus during the 2014/15 season with the average and the range of picking and roadsiding charges by variety and type of fruit (fresh versus processed), as well as the average hauling charges for all varieties by distance. The fact sheet will assist growers in the effort to compute the changes to their economic returns as the industry adapts to remain profitable.
http://edis.ifas.ufl.edu/fe977