1. 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) singerman@ufl.edu (863) 956-8870

2. 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

3. 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

4. Estimate the Percentage of Acres in your Operation Infected with HLB

5. Estimate the Percentage of Trees in your Operation Infected with HLB

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

7. Region # Surveys Average Acreage Total Acreage Average % Infected Acres Average % Infected Trees Average % Yield Loss Ridge4469328,414888345 Ridge/SW111,96217,655907437 SW FL215,818110,545927733 Total76156,614 Responses by Region

8. 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

9. 2014/15 Indian River Cultural Cost of Production per Acre for Fresh Grapefruit

10. 2014/15 Indian River Cultural Cost of Production per Acre for Fresh Grapefruit

11. 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 Insecticides299.6090.20209.40389.80 Fungicides240.0047.05192.95287.05 Nutritionals330.4091.77238.63422.17 Ground Application413.4051.75361.65465.15 Aerial Application17.005.1011.9022.10 Total Foliar Sprays Costs1300.40 1014.521586.28 Fertilizer Ground/Dry Fertilizer267.00180.6986.31447.69 Application Cost20.606.1814.4226.78 Application Number 1.361.043.8 Fertigation/Liquid Fertilizer151.2077.1074.10228.30 Application Cost13.758.755.0022.50 Application Number 15.904.1035.90 Total Fertilizer Costs452.55 179.82725.28 Other costs (Weed mgmt., Pruning, etc.)725.66 Total Cultural Cost2478.61 1920.013037.21

16. 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

17. 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

18. Results “Best” CHMA yield (boxes per acre): 2012/13: 364 - 105 + 83 = 342 2013/14 : 364 - 184 + 145 = 325 “Moderate” CHMA yield (boxes per acre): 2012/13: 364 - 105 = 259 2013/14 : 364 - 184 = 180

19. 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

20. Thank you for attention My contact info: Citrus Research and Education Center singerman@ufl.edu (863) 956-8870