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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Main Authors: Ariel Singerman, Marina Burani Arouca, Mercy A. Olmstead
Format: Article
Language:English
Published: The University of Florida George A. Smathers Libraries 2017-07-01
Series:EDIS
Subjects:
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
description 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.
format Article
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institution Kabale University
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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
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AT marinaburaniarouca establishmentandproductioncostsforpeachorchardsinfloridaenterprisebudgetandprofitabilityanalysis
AT mercyaolmstead establishmentandproductioncostsforpeachorchardsinfloridaenterprisebudgetandprofitabilityanalysis