Establishment and Production Costs for Peach Orchards in Florida: Enterprise Budget and Profitability Analysis
The article summarizes the establishment and production costs, as well as the potential profitability of a peach orchard in Florida. Our findings show the initial investment required for a peach operation in Florida to be $6,457 per acre; the expense in land preparation and planting alone in year 1...
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The University of Florida George A. Smathers Libraries
2017-07-01
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Online Access: | https://ojs.test.flvc.org/edis/article/view/90813 |
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author | Ariel Singerman Marina Burani Arouca Mercy A. Olmstead |
author_facet | Ariel Singerman Marina Burani Arouca Mercy A. Olmstead |
author_sort | Ariel Singerman |
collection | DOAJ |
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The article summarizes the establishment and production costs, as well as the potential profitability of a peach orchard in Florida. Our findings show the initial investment required for a peach operation in Florida to be $6,457 per acre; the expense in land preparation and planting alone in year 1 is $2,541 per acre. Variable and fixed costs in years 2 through 15 average $5,680 per acre. As an example of profitability, when using a 10% discount rate, an operation yielding 6,525 (7,254) pounds of marketable fruit per acre during its most productive years obtains a positive NPV when the average price is $2.38 ($2.13) per pound.
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format | Article |
id | doaj-art-c5cc9d140eca41f99491253f9a7506ef |
institution | Kabale University |
issn | 2576-0009 |
language | English |
publishDate | 2017-07-01 |
publisher | The University of Florida George A. Smathers Libraries |
record_format | Article |
series | EDIS |
spelling | doaj-art-c5cc9d140eca41f99491253f9a7506ef2025-02-07T13:58:21ZengThe University of Florida George A. Smathers LibrariesEDIS2576-00092017-07-0120174Establishment and Production Costs for Peach Orchards in Florida: Enterprise Budget and Profitability AnalysisAriel Singerman0Marina Burani Arouca1Mercy A. Olmstead2https://orcid.org/0000-0002-3539-3452University of FloridaUniversity of FloridaUniversity of Florida The article summarizes the establishment and production costs, as well as the potential profitability of a peach orchard in Florida. Our findings show the initial investment required for a peach operation in Florida to be $6,457 per acre; the expense in land preparation and planting alone in year 1 is $2,541 per acre. Variable and fixed costs in years 2 through 15 average $5,680 per acre. As an example of profitability, when using a 10% discount rate, an operation yielding 6,525 (7,254) pounds of marketable fruit per acre during its most productive years obtains a positive NPV when the average price is $2.38 ($2.13) per pound. https://ojs.test.flvc.org/edis/article/view/90813FE1016Peach, Plum and Nectarine Production |
spellingShingle | Ariel Singerman Marina Burani Arouca Mercy A. Olmstead Establishment and Production Costs for Peach Orchards in Florida: Enterprise Budget and Profitability Analysis EDIS FE1016 Peach, Plum and Nectarine Production |
title | Establishment and Production Costs for Peach Orchards in Florida: Enterprise Budget and Profitability Analysis |
title_full | Establishment and Production Costs for Peach Orchards in Florida: Enterprise Budget and Profitability Analysis |
title_fullStr | Establishment and Production Costs for Peach Orchards in Florida: Enterprise Budget and Profitability Analysis |
title_full_unstemmed | Establishment and Production Costs for Peach Orchards in Florida: Enterprise Budget and Profitability Analysis |
title_short | Establishment and Production Costs for Peach Orchards in Florida: Enterprise Budget and Profitability Analysis |
title_sort | establishment and production costs for peach orchards in florida enterprise budget and profitability analysis |
topic | FE1016 Peach, Plum and Nectarine Production |
url | https://ojs.test.flvc.org/edis/article/view/90813 |
work_keys_str_mv | AT arielsingerman establishmentandproductioncostsforpeachorchardsinfloridaenterprisebudgetandprofitabilityanalysis AT marinaburaniarouca establishmentandproductioncostsforpeachorchardsinfloridaenterprisebudgetandprofitabilityanalysis AT mercyaolmstead establishmentandproductioncostsforpeachorchardsinfloridaenterprisebudgetandprofitabilityanalysis |