Table 2. COSTS AND RETURNS TO PRODUCE LOOSE LEAF LETTUCE
Coachella Valley - 1996
Labor Rate:
$8.38/hr. machine labor
$7.37/hr. non-machine labor
Interest Rate: 11.61%
| Quantity/Acre | Unit | Price or Cost/Unit |
Value or Cost/Acre |
Your Cost |
|
|---|---|---|---|---|---|
| GROSS RETURNS | |||||
| Lettuce | 875 | Box | 6.20 | 5425 | |
| TOTAL GROSS RETURNS FOR LOOSE LEAF LETTUCE |
5425 | ||||
| OPERATING COSTS: | |||||
| Rent: | |||||
| D-8 Crawler Rental | 1.00 | Acre | 25.00 | 25 | |
| Custom: | |||||
| Laser Level | 1.00 | Acre | 15.00 | 15 | |
| Chicken Manure | 1.00 | Acre | 70.00 | 70 | |
| Soil Testing | 1.00 | Acre | 2.00 | 2 | |
| Bird Control | 1.00 | Acre | 36.00 | 36 | |
| Thinning & Weeding | 1.00 | Acre | 160.00 | 160 | |
| Water: | |||||
| Irrigate | 48.00 | AcIn | 3.57 | 171 | |
| Insecticide: | |||||
| Admire | 10.00 | Oz | 4.19 | 42 | |
| Dipel 2x | 10.00 | Lb | 12.13 | 121 | |
| Ladybugs | 1.00 | Gal | 38.00 | 38 | |
| Seed: | |||||
| Lettuce Seed | 10.00 | Lbs | 12.50 | 125 | |
| Fertilizer: | |||||
| Special F(3/35/0) | 32.50 | Gal | 1.98 | 64 | |
| Liquid N | 150.00 | Gal | 0.965 | 145 | |
| Herbicide: | |||||
| Kerb 50W | 3.00 | Lbs | 24.98 | 75 | |
| Contract: | |||||
| PCA Field Check | 1.00 | Acre | 20.00 | 20 | |
| Harvesting | 875.00 | Box | 1.50 | 1313 | |
| Boxes | 875.00 | Box | 1.00 | 875 | |
| Broker Commission | 875.00 | Box | 0.62 | 542 | |
| Labor (machine) | 13.27 | hrs | 8.38 | 111 | |
| Labor (non-machine) | 24.40 | hrs | 7.37 | 180 | |
| Fuel - Diesel | 99.46 | gal | 1.10 | 109 | |
| Lube | 16 | ||||
| Machinery repair | 96 | ||||
| Interest on operating capital @ 11.61% | 85 | ||||
| TOTAL OPERATING COSTS/ACRE | 4437 | ||||
| TOTAL OPERATING COSTS/BOX | 5.07 | ||||
| NET RETURNS ABOVE OPERATING COSTS | 988 | ||||
| CASH OVERHEAD COSTS: | |||||
| Office Expenses | 50 | ||||
| Liability Insurance | 35 | ||||
| Land Rent | 133 | ||||
| Management | 105 | ||||
| Sprinkler Pipe | 130 | ||||
| Sprinkler Pump Rent | 75 | ||||
| Property Taxes | 3 | ||||
| Property Insurance | 2 | ||||
| Investment Repairs | 1 | ||||
| TOTAL CASH OVERHEAD COST/ACRE | 534 | ||||
| TOTAL CASH COSTS/ACRE | 4970 | ||||
| TOTAL CASH COSTS/BOX | 5.68 | ||||
| TOTAL NON-CASH OVERHEAD COSTS (DEPRECIATION & INTEREST): | |||||
| Shop Building | 1 | ||||
| Shop Tools | 1 | ||||
| Fuel Tanks & Pumps | 2 | ||||
| Surface Pipe | 0 | ||||
| Equipment | 91 | ||||
| TOTAL NON-CASH OVERHEAD COST/ACRE | 94 | ||||
| TOTAL COSTS/ACRE | 5065 | ||||
| TOTAL COSTS/BOX | 5.79 | ||||
| NET RETURNS ABOVE TOTAL COSTS | 360 | ||||
