Middle Georgia Peach Budget
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- Harriet Owen
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1 Middle Georgia Peach Budget Esendugue Greg Fonsah 1 Kathryn C. Taylor 2 Frank Funderburk 3 1 Dept of Ag & Applied Economics Tifton, Georgia 2 Dept of Horticulture - Byron, Georgia 3 Peach County Extension Coordinator Fort Valley, Georgia Table 1: Middle Georgia Peach Budget Assuming Full Production in the Fourth Year, Best Optimistic Median Pessimistic Worst Your Y/P Yield (lbs) Price per lb Item Application Unit Quantity Price $Amt/A Your Cost Variable Costs Fertilizers Nitrogen (N) + Potash 2/yr Acre Application 2/yr Acre Pruning Dormant pruning 1/yr Trees Summer pruning 1/yr Trees Thinning 1/yr Trees Orchard removal and maintenance 1/yr Acre Mowing 7/yr Acre Pre-emergence 2/yr Acre Application 3/yr Acre Insect and Disease Control Material and labor Season Acre Irrigation - Drip System Acre Interest on Operating Costs $ Total Operating Costs
2 Harvesting & Marketing Costs Harvesting lb Custom packing lb Brokerage Acre Packing operating costs lb Total Harvesting and Marketing Costs Total Variable Costs Packing equipment cost lb Overhead and management $ Irrigation - Drip System Acre Land leasing $ Recaptured costs ($) Acre Total ($) Total Budgeted Cost Per Acre ($) 3,802.75
3 Table 2: First Year Estimated Establishment and Maintenance Cost Per Acre of Producing Peaches in Middle Georgia, Items Application Unit Quantity Price Amount Your Cost Land preparation Subsoiling Acre Lime (Dolomite) Ton DAP Acre Preplant harrowing Acre Orchard layoff Acre Pre-plant fumigation Acre Trees Acre Tree preparation Acre Planting (18' x20') Acre Post-plant harrowing Acre Post-plant fertilizer ( ) lbs Nitrogen 2/yr lbs Fertilizer application Acre Mowing 5/yr Acre Pre-emergence 2/yr Acre Application 3/yr Acre Interest on operating costs $ Total Operating Costs Overhead and management $ Land leasing Acre Total Total Establishment Costs
4 Table 3: Second Year Estimated Establishment and Maintenance Cost Per Acre of Producing Peaches in Middle Georgia, Fertilizers Items Application Unit Quantity Price Amount Your Cost Spring fertilizer ( ) 1/yr Trees Nitrogen (N) 1/yr Trees Application 2/yr Application Pruning Dormant pruning 1/yr Trees Fruit and sprout removal 1/yr Acre Tree replacement 1/yr Trees Replant 1/yr Trees Mowing 5/yr Acre Pre-emergence 2/yr Acre Application 3/yr Acre Insect and Disease Control Trunk spray, material and labor 1/yr Acre Interest on operating costs $ Total Operating Costs Overhead and management $ Land leasing $ Total Total Establishment Costs
5 Table 4: Third Year Estimated Management Cost Per Acre of Producing Peaches in Middle Georgia, Items Application Unit Quantity Price Amount Your Cost Fertilizers Nitrogen (N) + Potash 2/yr Acre Application 2/yr Acre Pruning Dormant pruning 1/yr Trees Summer pruning 1/yr Trees Thinning 1/yr Trees Mower 7/yr Acre Pre-emergence 2/yr Acre Application 3/yr Hrs Insect and Disease Control Machinery, material and labor Season Acre Irrigation Acre Interest on operation costs $ Total Operating Costs Harvesting & Marketing Costs Harvesting/bushel lbs Custom packing lbs (Fludioxinil/wax/cooling) Brokerage lbs Packing operation costs lbs Total Harvesting and Marketing Costs Total Variable Cost Packing equipment lbs Overhead and management $ Drip irrigation Acre Land leasing $ Total $ Total Gross Establishment Costs $ Returns from receipt $ Total Establishment Costs
6 Table 5: Compounded and Recaptured Establishment Cost of Growing Peaches in Middle Georgia, Compounded Rate Estimated Costs Total* 3 Years to Production Years to Production Year to Production Compounded Establishment Cost RECAPTURED ESTABLISHMENT COST Years 12 Interest rate 0.07 Annual Cost *Totals may not add up due to rounding error.
7 Table 6: Profit and Loss Statement for Middle Georgia Peach Production Before Debt Service, Sales ($) 5, Less: Variable Costs ($) 2, Gross Profit ($) 2, Less: Fixed (Overhead) Costs ($) Net Operating Profit (Loss) ($) 1, Profitability Indicators Gross Profit Margin (%) Net Operating Profit Margin (%) Table 7: Break-Even Analysis for Middle Georgia Peach Production, Break-Even Yield Per Acre (lbs) 8844 Break-Even Pre-harvest Operating Cost Per lb ($) 0.08 Break-Even Harvest & Marketing Cost Per lb ($) 0.14 Break-Even Variable Costs Per lb ($) 0.22 Break-Even Per lb ($) 0.07 Break-Even Costs Per lb ($) 0.29 Acknowledgment The authors would like to thank the Georgia Agricultural Commodity Commission for Peaches for sharing industry information and providing funding for developing this budget. Special thanks to the following growers: Messrs Al Pearson, Bobby Lane, Duke Lane III, Robert Dickey, and Jeff Wainwright who took time during their busy schedules to sit with the authors to provide additional information that made this budget possible.
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