Florida Citrus Grower Profitability to Decline

Ernie Neff Economics

Although orange juice sales have surged in recent months, the Florida Department of Citrus (FDOC) director of economic and market research expects growers to have reduced profitability this season. Marisa Zansler told the Florida Citrus Commission on May 20 that demand for Florida citrus is expected to be tempered with higher production costs and suppressed grower prices for uncommitted early/mid …

Alico: Citrus Price Improvement Could Be Coming

Ernie Neff Economics, Industry News Release

Alico, Inc., one of Florida’s largest citrus producers, announced financial results for the second quarter of fiscal year 2020 and the six-month period ending March 31. Some highlights regarding the company’s citrus operation follow. For the six-months ending March 31, Alico Citrus harvested approximately 5.61 million boxes of fruit, an increase of 23.3 percent from the same period a year …

The Economics of Mesh Bags for Protecting Young Citrus Trees

Tacy Callies Economics

By Ariel Singerman The use of mesh bags has been proposed as a strategy for excluding Asian citrus psyllids to protect young citrus trees. The expected benefit of using mesh bags is increased yield by delaying HLB infection. A scientific experiment to evaluate the effectiveness of mesh bags started in February 2018. There are still many unknowns regarding yield, use …

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U.S. Citrus Supply and Prices

Tacy Callies Crop Forecast, Economics

The U.S. Department of Agriculture’s Economic Research Service (ERS) released a Fruit and Tree Nuts Outlook report on March 31. The report shows that the forecast for the U.S. citrus crop is down 4 percent from last season and how this is affecting imports, exports and pricing. LOWER PRODUCTIONU.S. all-orange production is expected to decrease by 1.6 percent, largely due …

Managing Orange Production Costs

Ernie Neff Economics, Production

University of Florida Institute of Food and Agricultural Sciences (UF/IFAS) Extension economist Ariel Singerman discusses a recent article he wrote titled “How Much Can Florida Growers Afford to Spend on Caretaking Processed Orange Groves?” The article addresses the grove management decisions growers must make in the face of recent orange price declines. It points out that an average grower would …

Citrus Shipping Costs and Concerns

Tacy Callies Economics, Regulation

By Tara Wade On Dec. 16, 2019, all commercial motor vehicles (CMVs) are mandated to carry electronic logging devices (ELDs). These ELDs will replace paper logs and attach to trucks’ engines. They easily record idle time, driving time, miles driven, vehicle movement, and on- and off-duty time — making it easier for law enforcement to check if drivers are compliant …

How Much Can Florida Growers Afford to Spend on Caretaking Processed Orange Groves?

Tacy Callies Economics

By Ariel Singerman The decrease in prices for processed oranges this season presents growers with challenging management decisions. Last October, the Florida Department of Citrus (FDOC) projected an average 2019–20 price for early and mid-season oranges of $1.62 per pound solids, while for Valencia oranges the forecast was $1.78 per pound solids. Those projected prices represent a 26 percent decline …

Grower Frustration Mounting Over Millions of Uncommitted Boxes

Ernie Neff Economics, Processing

Highlands County grower Jarred Eddy recently shared his frustration with the Florida Citrus Commission over his failure to receive any offers for the fruit from his 200-acre grove. Following Eddy’s Oct. 23 presentation, he and Highlands County Citrus Growers Association Executive Director Ray Royce discussed the problem. Eddy says he expected offers several times since the middle of summer, but “as …

Economics of CUPS and IPCs

Ernie Neff CUPS, Economics, HLB Management

At Citrus Expo, economist Ariel Singerman discussed the economics of producing citrus under protective screen (CUPS) and covering young trees with individual protective covers (IPCs). The primary purpose of both strategies is to exclude HLB-spreading Asian citrus psyllids. Singerman is with the University of Florida Institute of Food and Agricultural Sciences (UF/IFAS). Singerman calculated that a CUPS grower who insures …

The Real Cost of HLB in Florida

Tacy Callies Economics, Production, Research

By Ariel Singerman This article summarizes the major changes in the cost of production for processed oranges in Florida since the outbreak of huanglongbing (HLB). To deal with the disease, growers have significantly changed their cultural practices. Those changes have had a considerable impact on the cost of production per acre. NOMINAL COSTS VS. REAL COSTSHowever, given that inflation also …

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Grower Optimism Tempered by Pricing

Ernie Neff Citrus, CUPS, Economics

Central Florida citrus grower Jerry Mixon of KLM Farms recently expressed optimism that is tempered by current orange prices. “I am optimistic, and it seems like the industry does have that same feeling,” Mixon says. “Yields are up. I have heard a little bit that (pound) solids are up a little bit, particularly Valencia crops … Trees look better.” Mixon …

Small Citrus Growers Struggling to Sell Valencias

Tacy Callies Citrus, Economics, sales

Citrus grower Chip Henry of McGuire Groves in Apopka reports that some small citrus growers in Florida are currently unable to sell their Valencias. Although Henry’s 12 acres of Valencias are ready to be picked — with a high Brix level and good pound solids — he has no market for his fruit. Henry is not the only grower currently …

Citrus Production Cost Surveys Scheduled

Daniel Cooper Economics, Production

In an effort to continue to gather accurate production cost data for Florida citrus growers, University of Florida economist Ariel Singerman will be conducting two regional surveys. This will be the fourth year that Singerman has met with citrus growers to gather current production cost data. This information is important for a multitude of reasons, including citrus grove valuations for …

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The Economics of Mesh Bags

Ernie Neff Economics, HLB Management

Numerous Florida citrus growers have recently put mesh bags over individual young citrus trees to exclude HLB-spreading Asian citrus psyllids. A topic title at the 2019 Florida Citrus Growers’ Institute asked whether the practice is profitable. The presentation was made by University of Florida Institute of Food and Agricultural Sciences economist Ariel Singerman. “The answer to the question of whether …

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Citrus Land Price Rises in Florida

Ernie Neff Citrus, Economics

The sales price of Florida citrus land rose in 2018, according to the Lay of the Land Market Report issued by Coldwell Banker Commercial Saunders Real Estate (CBCSRE) on March 29. The price per net-tree acre was approximately 5.8 percent higher than in 2017, and the gross acre price was approximately 9.2 percent higher than in 2017. “The large growers …

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2016-17 Florida Citrus Season: Smaller Harvest, Higher Prices

Daniel Cooper Economics, Industry News Release

A new report from economists with the University of Florida Institute of Food and Agricultural Sciences (UF/IFAS) Economic Impact Analysis Program (EIAP) showed higher prices offset production declines during Florida’s 2016-17 citrus growing season, and the industry’s overall economic contributions changed little from 2015-16. Titled, “Economic Contributions of the Florida Citrus Industry in 2016-17,” the report was formally presented to …

New Regulations Costly to California Growers

Len Wilcox California Corner, Economics

New regulations will cost California citrus growers an average of $701 per acre per year, or $203 million annually statewide, according to a new study commissioned by the Citrus Research Board (CRB). “Compliance with environmental regulations not associated with groundwater sustainability is estimated to increase costs by $17.7 million, or $67 per acre of citrus,” predicts Bruce A. Babcock, a …

Citrus Growers Needed for Survey Participation

Tacy Callies Economics

Ariel Singerman, University of Florida assistant professor, will be conducting his annual production cost survey for processed oranges grown in Southwest Florida. The survey will consist of grower meetings in two locations. The first meeting will take place on May 18 at 9:00 a.m. at the Hendry County Extension Office (Dallas Townsend Ag Center) in LaBelle. To confirm your participation in …

International Citrus Business Conference Takes Strategic View

Jaci Schreckengost Citrus, Economics, Top

Allen Morris has been directly involved with the citrus industry since 1984. He has seen many ups and downs in the industry during this time. Now, he is ready to face the current citrus challenges head on. Morris is the owner and operator of Morris Agribusiness Services. In the past, he held events called the International Citrus Economics Conference. Along …

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Financial Management Conference Benefits Florida Ag

Ernie Neff Economics

Regina Thomas, co-organizer of the Florida Agriculture Financial Management Conference held Nov. 2-3 near Orlando, provides an overview of the event and discusses its origins. Thomas is senior vice president/director of financially related services for Farm Credit of Central Florida. Thomas says the conference began eight years ago during the recession that rocked the entire U.S. economy. “We had a …