Minnesota Specialty Crops An Analysis of Profitability & Performance 2008-2011 containing results for fresh market apples, berries, cantaloupe, grapes, pumpkins, sweet corn, and assorted vegetables
PROJECT PARTNERS Copyright 2012, Minnesota Department of Agriculture This publication may be reprinted, in whole or in part, without permission. Please credit the Minnesota Department of Agriculture (MDA). The MDA is an equal opportunity provider and employer. No person or persons are excluded from the use of services, employment, examination, appointment, training, promotion, retention, discipline, or any other transactions, because of race, color, religion, national origin, sex, creed, marital status, veteran status, status with regard to public assistance, political opinion or affiliation, age, or handicap. In accordance with the Americans with Disabilities Act, an alternative form of communication is available upon request. TDD: 800-627-3529. 2 Support for this project was provided to the MDA by the United States Department of Agriculture (USDA) Specialty Crop Block Grant Program. Opinions, findings, conclusions, or recommendations expressed in this publication do not necessarily reflect the view of the USDA.
MINNESOTA SPECIALTY CROP FARM PERFORMANCE By Dale Nordquist 1, Thaddeus McCamant 2, Meg Moynihan 3, and Gene Kuntz 4 More and more people are interested in growing fruits and vegetables for the local market both to meet the rising demand for local food, and to diversify incomes. Until recently, there was no official data on the economics of many locally grown specialty crops in Minnesota. Rumors about spectacular profits for locally grown fruits and vegetables were often repeated and occasionally published in newspapers and magazines. Several years ago, the Minnesota Department of Agriculture (MDA), Farm Business Management (FBM) programs at Minnesota State Colleges and Universities (MnSCU), and the Center for Farm Financial Management (CFFM) at the University of Minnesota started a project to get better, more accurate information about the financial performance of specialty crops in Minnesota. Funds for this effort have been provided by USDA s Specialty Crop Block Grant program and provide scholarships that make it more affordable for growers to participate. This report contains financial summaries from 47 Minnesota farms that participated in the project between 2008 and 2011. It is intended to give growers (and potential growers) some of the hard data they need to help them decide what kind of fruit or vegetable production could fit their financial goals. Existing growers can also use this information to compare their returns to the averages experienced by others. This report includes enterprise data for the following specialty crops: Apples Blueberries Cantaloupe Grapes Pumpkins Raspberries Strawberries Sweet corn Assorted vegetables RESULTS The enterprise reports highlight the diversity of returns for these farms. Strawberries have been consistently profitable over the four years of this project. Raspberries and assorted vegetables have also been money-makers. Pumpkins were profitable in 2010 and 2011. Several other crops (cantaloupe, grapes, and sweet corn) covered or almost covered direct and overhead expenses but did not cover full compensation to the owner for labor and management. Please note that these results are from a limited number of farms and other farms in the state may have experienced different financial results. In general, crop performance can be divided into three categories: high gross returns (above $8,000 per acre); medium gross returns ($4,000-$6,000 per acre); and low gross returns (below $2,000 per acre). High gross return crops include strawberries and mixed vegetables. Crops with medium gross returns include blueberries, apples, cantaloupes, and raspberries. Crops grossing under $2,000 per acre were sweet corn, pumpkins, and grapes. However, high gross returns for specialty crops do not assure profitability. Specialty crops require money to 1 Center for Farm Financial Management, University of Minnesota, 2 Northland College, 3 Minnesota Department of Agriculture, 4 South Central College 3
establish, grow, harvest, and sell. Hired labor was the biggest direct expense for every crop except pumpkins. Seed, fertilizers, and crop chemicals were all higher for specialty crops than for row crops, while marketing (advertising, stall fees at farmers markets, etc.) often cost more than $300 per acre. The highest overhead costs for most crops were machinery, building depreciation, and interest. After subtracting overhead and direct expenses, the only crops that demonstrated consistent profitability were strawberries, raspberries, pumpkins, and assorted vegetables. Strawberries returned $3,610 per acre, but this figure does not include establishment costs, and strawberries must be planted, weeded, and watered for one year before they can be harvested. In order to be profitable, a crop must be sold for more than it costs to produce. At the bottom of each page there is a section that details cost of production. Inexperienced growers often only look at the cost of production after direct expenses, but the true cost of production includes overhead expenses, too. The cost of production in Minnesota is quite high for most specialty crops. On average, sweet corn cost about $4.00 per dozen to produce. Pick-your-own strawberries cost $1.10 a pound to grow, while cantaloupe cost $0.60 a pound. Customers need to know that Minnesota growers have to charge a fair price so that they can remain in business. By the same token, growers need to know that they are not gouging the customer when they sell their products for prices above the cost of production. Farms must be profitable to survive. PROCEDURES The enterprise reports are based on the actual farm records from individual specialty crop producers. Under the guidance of a MnSCU farm management educator, each producer completes an analysis to evaluate the financial soundness and performance of the entire operation. Income and expenses are assigned to specific crops to create the individual farm enterprise reports that become the basis of these group summaries. The analysis for each farm goes through several layers of review to provide as much confidence in the accuracy as can be reasonably expected. The data is published by the Center for Farm Financial Management (CFFM) at the University of Minnesota in a searchable database called FINBIN, which is available to the public at www.finbin.umn.edu. For data integrity and grower privacy reasons, at least five farms must have grown the crop for it to be included in the report. The column called is the average for 2008-2011. If only the average column is included, it is the average of the crop over all four years. As you review these reports, keep in mind that while this a relatively small sample, there are not a lot of sources of this type of real-farm data, so these reports do reflect the real world for participating farms. SPOTLIGHT ON APPLES Most of the apples in this report were valued at the wholesale price, even if the farmer was selling apples for retail prices on the property. The average price of $43.56 a bushel (slightly over $1.00 per pound) reflects the wholesale price. The average retail price was closer to $1.70 per pound, with high-value cultivars like Honeycrisp and Zestar averaging over $2.00. Many apple growers have a farm store where they sell apple pies, caramel apples, and other products in addition to fresh apples. This analysis includes only the wholesale value of the apples. The value added and the expenses incurred by the stores were analyzed separately and are not included in this report. When the store and the orchard were combined, apple enterprises were profitable for most producers. In all cases, the majority of sales at the farm stores were fresh apples. 4
GLOSSARY Yield based on actual reported total production divided by acres. Value per unit sales price for products sold, ending inventory value for production that is still in inventory at year end. Gross return per acre Yield x Value per Unit, plus the value of any other income that was allocated to this enterprise. Direct expense Expenses incurred that can be directly attributed to production of this crop = total accrual expense for this crop divided by acres. Land rent is only assigned to cash rented crops. Some expenses that cannot be easily assigned to specific crops, such as fuel and repairs, are allocated across all enterprises based on allocation factors that weight the relative use of each expense by different crops raised. Return over direct expense per acre the amount contributed by this crop to covering overhead expenses. Overhead expenses Total expense incurred (accrual amount) allocated based on relative weight of use by each enterprise. Ownership costs (long-term interest and real estate taxes) are allocated only to production on owned land. Depreciation is based on economic, not tax, depreciation. No opportunity cost is included for equity capital. Net return the amount contributed toward covering owner withdrawals and taxes. Net return over lbr & mgt the amount returned after subtracting an opportunity charge for unpaid labor and management. For LLCs and corporations, wages paid to owners are included in labor and management charge. Cost of production with labor and management the breakeven price per unit that will cover all expenses including a return for unpaid labor and management. Machinery cost per acre includes fuel, repairs, machinery lease expense, interest on machinery, machinery depreciation, and custom hire expense. Est. labor hours per acre total hours of operator and hired labor allocated to this enterprise divided by acres. 5
Apples (irrigated and non-irrigated, on owned land) 2011 Number of fields 22 11 Number of farms 15 7 Acres 5.47 3.85 Yield per acre (bu.) 175.88 98.50 Operators share of yield % 100.00 100.00 Value per bu. 28.75 43.56 Other product return per acre 74.16 Total product return per acre 5,131.07 4,290.27 Crop insurance per acre 74.81 212.77 Gross return per acre 5,205.88 4,503.03 Direct Expenses Seed 26.92 16.60 Fertilizer 194.13 179.63 Crop chemicals 233.77 231.28 Non-chemical crop protect 1.00 2.84 Crop insurance 34.88 51.32 Irrigation energy 17.78 Packaging and supplies 61.03 173.55 Fuel & oil 224.18 211.92 Repairs 431.83 560.07 Custom hire 34.74 Hired labor 740.22 453.69 Machinery leases 4.31 12.25 Utilities 82.09 50.09 Hauling and trucking 72.24 11.94 Marketing 470.62 358.89 Operating interest 111.07 11.58 Miscellaneous 50.07 67.49 Total direct expenses per acre 2,790.87 2,393.15 Return over direct exp per acre 2,415.01 2,109.89 continued... 6
Apples (page 2) 2011 Overhead Expenses Hired labor 220.02 242.22 Machinery leases 4.99 13.09 Building leases 225.80 RE & pers. property taxes 122.07 125.44 Farm insurance 197.49 208.53 Utilities 81.47 116.17 Dues & professional fees 270.82 188.52 Interest 177.47 333.47 Mach & bldg depreciation 814.56 715.46 Miscellaneous 403.84 277.52 Total overhead expenses per acre 2,518.54 2,220.42 Total dir & ovhd expenses per acre 5,309.41 4,613.57 Net return per acre (103.53) (110.53) Government payments Net return with govt pmts (103.53) (110.53) Labor & management charge 1,077.52 1,043.41 Net return over lbr & mgt (1,181.04) (1,153.95) Cost of Production Total direct expense per bu. 15.87 24.30 Total dir & ovhd exp per bu. 30.19 46.84 Less govt & other income 29.34 44.68 With labor & management 35.47 55.27 Net value per unit 28.75 43.56 Machinery cost per acre 1,238.12 1,280.58 Est. labor hours per acre 160.18 235.89 7
Blueberries (irrigated and non-irrigated, on owned land) Number of fields 15 Number of farms 10 Acres 0.73 Yield per acre (lb.) 2,118.78 Operators share of yield % 100.00 Value per lb. 2.77 Total product return per acre 5,878.16 Gross return per acre 5,878.16 Cost of Production Total direct expense per lb. 1.73 Total dir & ovhd exp per lb. 2.86 Less govt & other income 2.86 With labor & management 3.78 Net value per unit 2.77 Machinery cost per acre 1,328.01 Est. labor hours per acre 482.18 Direct Expenses Seed 107.16 Fertilizer 531.19 Crop chemicals 133.94 Irrigation energy 84.00 Packaging and supplies 57.15 Fuel & oil 166.06 Repairs 440.69 Hired labor 1,393.36 Hauling and trucking 6.64 Marketing 332.07 Operating interest 1.06 Miscellaneous 409.27 Total direct expenses per acre 3,662.60 Return over direct exp per acre 2,215.56 Overhead Expenses Hired labor 48.45 RE & pers. property taxes 99.00 Farm insurance 194.88 Utilities 41.97 Dues & professional fees 330.13 Interest 113.96 Mach & bldg depreciation 814.45 Miscellaneous 744.34 Total overhead expenses per acre Total dir & ovhd expenses per acre 2,387.16 6,049.76 Net return per acre (171.60) Government payments Net return with govt pmts (171.60) Labor & management charge 1,954.87 Net return over lbr & mgt (2,126.48) 8
Cantaloupe (irrigated and non-irrigated, on owned land) Number of fields 5 Number of farms 5 Acres 1.03 Yield per acre (cwt.) 69.80 Operators share of yield % 100.00 Value per cwt. 68.28 Total product return per acre 4,765.46 Gross return per acre 4,765.46 Cost of Production Total direct expense per cwt. 39.67 Total dir & ovhd exp per cwt. 60.26 Less govt & other income 60.26 With labor & management 68.62 Net value per unit 68.28 Machinery cost per acre 893.69 Est. labor hours per acre 161.18 Direct Expenses Seed 315.53 Fertilizer 165.05 Crop chemicals 97.09 Crop insurance 77.67 Irrigation energy 0.35 Packaging and supplies 67.57 Fuel & oil 258.24 Repairs 389.37 Hired labor 448.16 Utilities 3.50 Hauling and trucking 291.26 Marketing 456.50 Operating interest 82.00 Miscellaneous 116.50 Total direct expenses per acre 2,768.79 Return over direct exp per acre 1,996.67 Overhead Expenses Hired labor 22.62 Machinery leases 0.57 RE & pers. property taxes 87.73 Farm insurance 76.89 Utilities 82.24 Dues & professional fees 79.94 Interest 564.56 Mach & bldg depreciation 271.78 Miscellaneous 250.69 Total overhead expenses per acre 1,437.04 Total dir & ovhd expenses per acre 4,205.82 Net return per acre 559.63 Government payments Net return with govt pmts 559.63 Labor & management charge 583.54 Net return over lbr & mgt (23.91) 9
Grapes (irrigated and non-irrigated, on owned land) Number of fields 9 Number of farms 9 Acres 2.39 Yield per acre (ton) 0.89 Operators share of yield % 100.00 Value per ton 1,464.48 Total product return per acre 1,304.41 Gross return per acre 1,304.41 Cost of Production Total direct expense per ton 1,070.17 Total dir & ovhd exp per ton 1,467.62 Less govt & other income 1,467.62 With labor & management 1,859.97 Net value per unit 1,464.48 Machinery cost per acre 527.93 Est. labor hours per acre 185.80 Direct Expenses Seed 4.65 Fertilizer 65.58 Crop chemicals 194.56 Fuel & oil 29.84 Repairs 46.14 Custom hire 299.30 Hired labor 251.67 Marketing 37.02 Operating interest 7.40 Miscellaneous 17.02 Total direct expenses per acre 953.20 Return over direct exp per acre 351.21 Overhead Expenses Hired labor 87.65 RE & pers. property taxes 10.82 Farm insurance 6.86 Utilities 38.42 Dues & professional fees 20.63 Interest 7.65 Mach & bldg depreciation 171.42 Miscellaneous 10.56 Total overhead expenses per acre 354.01 Total dir & ovhd expenses per acre 1,307.20 Net return per acre (2.80) Government payments Net return with govt pmts (2.80) Labor & management charge 349.47 Net return over lbr & mgt (352.26) 10
Pumpkins (irrigated and non-irrigated, on owned land) Avg. All Farms 2011 2010 2009 Number of fields 32 7 10 11 Number of farms 32 7 10 11 Acres 2.60 2.09 3.26 2.51 Total product return per acre 1,571.71 2,178.26 1,537.57 1,241.52 Other crop income per acre 1.20 3.62 Gross return per acre 1,572.91 2,178.26 1,537.57 1,245.13 Direct Expenses Seed 138.43 172.33 124.72 126.62 Fertilizer 107.41 117.82 91.23 105.37 Crop chemicals 52.14 46.51 53.53 43.18 Crop insurance 3.49 5.83 Irrigation energy 33.66 7.35 17.57 66.08 Fuel & oil 59.06 59.53 62.90 49.79 Repairs 60.98 69.68 67.22 53.85 Repair, machinery 3.94 11.82 Custom hire 5.55 21.31 4.60 Hired labor 40.08 150.68 19.94 9.04 Machinery leases 4.90 11.99 3.74 3.98 Utilities 10.32 12.27 16.53 Hauling and trucking 12.04 30.67 Marketing 112.45 193.70 79.05 88.39 Operating interest 8.90 1.67 2.21 2.73 Miscellaneous 90.31 5.21 110.64 111.02 Total direct expenses per acre 743.68 857.78 686.11 688.39 Return over direct exp per acre 829.24 1,320.47 851.46 556.74 continued... 11
Pumpkins (page 2) Overhead Expenses Avg. All Farms 2011 2010 2009 Custom hire 2.41 13.70 Hired labor 145.12 101.87 74.55 294.21 Machinery leases 1.36 5.66 0.32 0.17 Building leases 14.17 22.93 15.52 RE & pers. property taxes 74.20 43.96 54.58 85.80 Farm insurance 52.43 62.94 44.17 39.96 Utilities 16.67 29.07 22.45 7.96 Dues & professional fees 32.12 40.68 26.73 20.47 Interest 54.03 51.16 55.13 55.59 Mach & bldg depreciation 240.49 134.45 156.41 264.66 Miscellaneous 96.86 90.38 36.93 182.15 Total overhead expenses per acre 729.88 573.86 494.21 966.48 Total dir & ovhd expenses per acre 1,473.55 1,431.65 1,180.32 1,654.88 Net return per acre 99.36 746.61 357.25 (409.74) Cost of production data for pumpkins is currently unavailable Government payments Net return with govt pmts 99.36 746.61 357.25 (409.74) Labor & management charge 364.58 478.86 185.01 91.35 Net return over lbr & mgt (265.22) 267.75 172.24 (501.09) Machinery cost per acre 331.18 291.65 264.60 318.81 Est. labor hours per acre 70.36 65.18 42.65 70.51 12
Raspberrries (irrigated and non-irrigated, on owned land) Number of fields 12 Number of farms 12 Acres 0.49 Yield per acre (lb.) 1,249.36 Operators share of yield % 100.00 Value per lb. 3.22 Total product return per acre 4,023.79 Gross return per acre 4,023.79 Cost of Production Total direct expense per lb. 1.31 Total dir & ovhd exp per lb. 2.20 Less govt & other income 2.20 With labor & management 2.84 Net value per unit 3.22 Machinery cost per acre 463.96 Est. labor hours per acre 138.36 Direct Expenses Seed 117.55 Fertilizer 79.74 Crop chemicals 11.67 Irrigation energy 12.63 Fuel & oil 104.45 Repairs 123.12 Hired labor 346.77 Utilities 50.80 Hauling and trucking 50.97 Marketing 455.51 Operating interest 210.86 Miscellaneous 78.16 Total direct expenses per acre 1,642.24 Return over direct exp per acre 2,381.55 Overhead Expenses Hired labor 81.27 RE & pers. property taxes 62.89 Farm insurance 84.67 Utilities 43.30 Dues & professional fees 71.80 Interest 292.87 Mach & bldg depreciation 344.54 Miscellaneous 128.88 Total overhead expenses per acre 1,110.21 Total dir & ovhd expenses per acre 2,752.45 Net return per acre 1,271.34 Government payments Net return with govt pmts 1,271.34 Labor & management charge 801.73 Net return over lbr & mgt 469.61 13
Strawberries (irrigated and non-irrigated, on owned land) 2011 2010 2009 2008 Number of fields 51 11 15 15 10 Number of farms 47 9 14 15 9 Acres 2.59 2.28 2.57 2.99 2.35 Yield per acre (lb.) 5,395.88 4,663.83 5,491.37 4,970.04 6,834.56 Operators share of yield % 100.00 100.00 100.00 100.00 100.00 Value per lb. 1.70 1.90 1.75 1.65 1.58 Other product return per acre 347.19 1,190.91 413.77 Total product return per acre 9,546.42 10,056.58 10,020.43 8,184.05 10,825.97 Gross return per acre 9,546.42 10,056.58 10,020.43 8,184.05 10,825.97 Direct Expenses Seed 49.98 111.49 52.02 25.52 27.66 Fertilizer 222.75 240.38 246.66 192.05 223.32 Crop chemicals 187.54 215.37 180.96 175.10 192.37 Crop insurance 41.36 35.86 56.53 35.66 33.21 Irrigation energy 68.70 38.90 47.30 99.23 77.34 Packaging and supplies 107.71 359.05 75.80 51.00 Fuel & oil 195.57 246.27 227.05 127.13 220.46 Repairs 315.89 559.86 287.68 235.59 255.06 Custom hire 20.44 12.95 49.00 Hired labor 997.84 1,361.91 772.46 819.89 1,319.19 Utilities 86.44 1.00 40.54 133.56 163.06 Hauling and trucking 30.66 104.92 Marketing 820.99 597.02 1,098.96 802.32 639.28 Operating interest 138.40 14.32 64.04 45.71 570.17 Miscellaneous 496.68 657.72 532.44 427.52 398.10 Total direct expenses per acre 3,780.94 4,439.14 3,800.31 3,219.27 4,119.24 Return over direct exp per acre 5,765.49 5,617.45 6,220.11 4,964.78 6,706.73 14 continued...
Strawberries (page 2) 2011 2010 2009 2008 Overhead Expenses Hired labor 242.05 199.35 486.36 182.57 Machinery leases 3.00 6.84 2.70 0.46 4.22 Building leases 24.05 52.29 25.80 RE & pers. property taxes 125.56 103.77 97.09 178.84 93.80 Farm insurance 164.06 194.63 197.27 117.45 165.89 Utilities 85.31 123.67 166.52 35.79 5.56 Dues & professional fees 221.07 168.66 166.08 351.52 118.13 Interest 293.24 173.31 327.55 450.27 64.92 Mach & bldg depreciation 647.37 509.60 519.53 678.66 944.72 Miscellaneous 349.25 255.07 235.03 427.62 487.73 Total overhead expenses per acre 2,154.95 1,734.91 2,250.43 2,448.98 1,884.98 Total dir & ovhd expenses per acre 5,935.89 6,174.05 6,050.74 5,668.25 6,004.22 Net return per acre 3,610.53 3,882.53 3,969.68 2,515.79 4,821.75 Government payments Net return with govt pmts 3,610.53 3,882.53 3,969.68 2,515.79 4,821.75 Labor & management charge 1,420.13 1,545.97 925.27 903.36 3,085.95 Net return over lbr & mgt 2,190.40 2,336.56 3,044.42 1,612.43 1,735.81 Cost of Production Total direct expense per lb. 0.70 0.95 0.69 0.65 0.60 Total dir & ovhd exp per lb. 1.10 1.32 1.10 1.14 0.88 Less govt & other income 1.04 1.07 1.03 1.14 0.88 With labor & management 1.30 1.40 1.20 1.32 1.33 Net value per unit 1.70 1.90 1.75 1.65 1.58 Machinery cost per acre 1,023.43 1,289.14 904.50 919.80 1,133.00 Est. labor hours per acre 215.47 250.63 204.50 194.78 235.44 15
Sweet Corn (direct market) (irrigated and non-irrigated, on owned land) 2011 2010 Number of fields 18.00 6.00 7.00 Number of farms 18.00 6.00 7.00 Acres 4.22 5.17 4.64 Yield per acre (doz.) 413.38 445.79 417.17 Operators share of yield % 100.00 100.00 100.00 Value per doz. 3.82 4.36 3.56 Total product return per acre 1,580.75 1,944.84 1,483.57 Other crop income per acre 17.11 Gross return per acre 1,597.85 1,944.84 1,483.57 Direct Expenses Seed 164.50 178.61 148.93 Fertilizer 119.99 115.74 130.56 Crop chemicals 71.84 68.61 74.37 Crop insurance 2.11 1.94 3.08 Irrigation energy 14.65 8.05 25.87 Fuel & oil 69.82 90.09 70.85 Repairs 99.65 146.69 89.20 Custom hire 12.14 25.02 Hired labor 206.50 467.55 36.92 Machinery leases 0.63 1.48 Utilities 0.76 0.61 Hauling and trucking 6.58 15.38 Marketing 92.64 60.48 158.95 Operating interest 3.08 4.71 2.25 Miscellaneous 34.63 3.90 5.40 Total direct expenses per acre 899.52 1,146.38 788.86 Return over direct exp per acre 698.34 798.46 694.71 16 continued...
Sweet Corn (direct market) (page 2) Direct Expenses 2011 2010 Hired labor 155.26 36.61 327.92 Machinery leases 0.70 1.63 RE & pers. property taxes 59.78 75.69 65.58 Farm insurance 69.73 94.06 72.68 Utilities 46.35 58.79 52.08 Dues & professional fees 44.77 58.14 48.60 Interest 91.63 93.16 106.13 Mach & bldg depreciation 136.80 164.13 158.95 Miscellaneous 111.61 172.64 94.25 Total overhead expenses per acre 716.62 753.21 927.81 Total dir & ovhd expenses per acre 1,616.14 1,899.59 1,716.66 Net return per acre (18.29) 45.24 (233.09) Government payments 0.77 1.64 Net return with govt pmts (17.52) 45.24 (231.45) Labor & management charge 490.84 679.01 482.05 Net return over lbr & mgt (508.36) (633.76) (713.50) Cost of Production Total direct expense per doz. 2.18 2.57 1.89 Total dir & ovhd exp per doz. 3.91 4.26 4.12 Less govt & other income 3.87 4.26 4.11 With labor & management 5.05 5.78 5.27 Net value per unit 3.82 4.36 3.56 Machinery cost per acre 306.47 387.86 329.21 Est. labor hours per acre 65.56 99.02 41.39 17
Vegetables (assorted) (irrigated and non-irrigated, on owned land) 2011 2010 Number of fields 12 5 5 Number of farms 12 5 5 Acres 5.21 5.90 4.55 Yield per acre ($) 7,581.45 6,851.11 9,387.38 Operators share of yield % 100.00 100.00 100.00 Value per $ 1.15 1.29 1.05 Total product return per acre 8,702.30 8,816.44 9,903.60 Gross return per acre 8,702.30 8,816.44 9,903.60 Direct Expenses Seed 544.22 537.22 680.70 Fertilizer 255.82 278.41 317.19 Crop chemicals 48.05 33.32 88.79 Crop insurance 6.80 18.68 Irrigation energy 7.32 13.37 2.77 Packaging and supplies 156.03 272.00 75.96 Fuel & oil 391.48 491.31 348.03 Repairs 290.62 256.45 382.76 Custom hire 7.50 12.51 4.40 Hired labor 621.06 1,076.81 191.21 Utilities 82.75 135.22 40.92 Hauling and trucking 181.06 166.64 281.32 Marketing 109.79 55.19 228.53 Operating interest 6.38 10.23 3.44 Miscellaneous 235.98 380.68 47.78 Total direct expenses per acre 2,944.87 3,719.36 2,712.47 Return over direct exp per acre 5,757.43 5,097.08 7,191.13 18 continued...
Vegetables (assorted) (page 2) Overhead Expenses 2011 2010 Hired labor 393.41 408.28 551.36 Machinery leases 0.32 0.87 Building leases 47.36 41.69 42.64 RE & pers. property taxes 56.70 44.34 90.41 Farm insurance 126.57 98.14 186.50 Utilities 143.78 149.43 201.24 Dues & professional fees 130.45 102.26 193.62 Interest 792.79 426.08 1,166.09 Mach & bldg depreciation 475.01 403.73 667.76 Miscellaneous 252.99 141.29 497.78 Total overhead expenses per acre 2,419.38 1,815.26 3,598.26 Total dir & ovhd expenses per acre 5,364.25 5,534.62 6,310.74 Net return per acre 3,338.05 3,281.82 3,592.87 Government payments Net return with govt pmts 3,338.05 3,281.82 3,592.87 Labor & management charge 1,552.88 2,023.74 1,288.09 Net return over lbr & mgt 1,785.18 1,258.09 2,304.78 Cost of Production Total direct expense per $ 0.39 0.54 0.29 Total dir & ovhd exp per $ 0.71 0.81 0.67 Less govt & other income 0.71 0.81 0.67 With labor & management 0.91 1.10 0.81 Net value per unit 1.15 1.29 1.05 Machinery cost per acre 1,140.32 1,159.06 1,363.56 Est. labor hours per acre 301.86 388.31 286.84 19
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