Citrus Production Costs: Can we get a handle on them? June 18, 2015 Florida Citrus Industry Annual Conference Bonita Springs, FL Ariel Singerman Assistant Professor / Extension Economist Citrus Research and Education Center (CREC) (863)

1) Impact of HLB on Citrus Operations in Florida 2) 2014/15 Indian River Cultural Costs of Production for Fresh Grapefruit 3) Economic Benefit of Citrus Health Management Areas (CHMAs) Presentation Outline

Impact of HLB on Citrus Operation in Florida In March 2015 conducted survey during growers’ day at CREC Aimed at obtaining an estimate of the level of impact of HLB 76 participants who represented 156,614 acres – approximately 30% of total citrus acreage in the state

Estimate the Percentage of Acres in your Operation Infected with HLB

Estimate the Percentage of Trees in your Operation Infected with HLB

Estimate the Average Percentage Yield Loss Per Acre you Attribute to HLB

Region # Surveys Average Acreage Total Acreage Average % Infected Acres Average % Infected Trees Average % Yield Loss Ridge , Ridge/SW111,96217, SW FL215,818110, Total76156,614 Responses by Region

Cost of Production Survey conducted in March 2015 at Indian River Citrus League 2014/15 Cultural cost of production per acre for growing Fresh Grapefruit in the Indian River region Other growers’ costs (management, regulatory and opportunity costs) not included Participants accounted for 44% of fresh grapefruit acreage in Indian River

2014/15 Indian River Cultural Cost of Production per Acre for Fresh Grapefruit

2014/15 Indian River Cultural Cost of Production per Acre for Fresh Grapefruit

2014/15 Indian River Cultural Cost of Production per Acre for Fresh Grapefruit (1)(2)(3)(4) CostStandard deviation per acre ($)value-1 std dev.+1 std dev. Foliar Sprays $ per acre Insecticides Fungicides Nutritionals Ground Application Aerial Application Total Foliar Sprays Costs Fertilizer Ground/Dry Fertilizer Application Cost Application Number Fertigation/Liquid Fertilizer Application Cost Application Number Total Fertilizer Costs Other costs (Weed mgmt., Pruning, etc.) Total Cultural Cost

Citrus Health Management Areas (CHMAs) Categories Data Provided by grower that owns Valencia blocks in 2 different CHMAs 5 blocks totaling 161 acres located in a “best” class CHMA 6 blocks comprising 221 acres located in a “moderate” class CHMA Data over 4 crop years: 2001/02; 2008/09; 2012/13 and 2013/14 What is the Economic Benefit of CHMAs?: A Case Study Ariel Singerman and Brandon Page

Analysis Objective: To examine whether blocks in those 2 CHMA classes attained different levels of yield and, if so, to quantify the differential economic benefit Analyzed data using regression analysis. Obtained: 1)Change in yield per acre through time 2)Change in yield by CHMA class: “best” vs. “moderate” class CHMA each year

Results “Best” CHMA yield (boxes per acre): 2012/13: = /14 : = 325 “Moderate” CHMA yield (boxes per acre): 2012/13: = /14 : = 180

Discussion Differential gross economic benefit of “best” over “moderate” class CHMAs: differential yield x on-tree price per box = differential gross benefit 2012/13: 83 boxes per acre x $8.60 per box = $714 per acre 2013/14: 145 boxes per acre x $8.40 per box = $1,218 per acre Evidence that CHMAs can contribute to enhance the individual grower’s profitability at a time when margins are becoming increasingly narrow

Thank you for attention My contact info: Citrus Research and Education Center (863)