Grant Information
| Knowledge Area | Subject of Investigation | Field of Science | Percent |
|---|---|---|---|
| 601 - Economics of Agricultural Production and Farm Management | 999 - Citrus, general/other | 3010 - Economics | 100% |
Florida is the third-largest orange producer in the world behind Brazil and China. Approximately 95% of all oranges grown in Florida are processed for juice (USDA-NASS, 2014). However, a bacterial disease known as citrus greening or Huanglongbing (HLB) is jeopardizing the Florida citrus industry.HLB is a bacterial disease rapidly spreading worldwide. It is also currently considered to be the most devastating citrus disease (FAO, 2015); HLB causes citrus trees' overall health to decline within a few years. The disease negatively affects yield, fruit size and quality, tree mortality, and cost of production. To date, there is neither a cure nor an economically viable option for managing HLB infected trees. Therefore, the disease has caused significant losses to the industry of the affected regions (Dewdney, Rogers and Brlansky, 2015).To slow down the disease's progress and infection rate, growers have had to transform how they manage their groves. In Brazil, for example, large growers still eradicate symptomatic trees. In Florida, growers adopted foliar nutritional programs and increased overall chemical use. Researchers are working on developing short- and long-term treatments for growers to manage HLB more effectively. Many of these efforts have focused on best management practices such as early detection, pest control efforts, strengthening of root systems of the trees to help tolerate the infection and combining integrated management approaches for sustaining production in infected trees.The goal of this project is to provide economic analysis to evaluate emerging technologies and management strategies that will potentially enable sustainable citrus production in Florida. In addition, we will also evaluate potential alternative crops to citrus.
The way in which the project will be conducted, by objective, is as follows.Objective 1. Collect costs and returns data for citrus production and fresh packing, including the constantly changing costs of managing HLB. The data will be obtained by surveying growers annually, which will help document the change in their production practices.Objective 2. Collect data on citrus production costs from Brazil and any other relevant citrus growing regions by creating a network of contacts. In-country trips will be made regularly to augment data collection directly from growers. The data will be valuable to assess the competitiveness of the Florida citrus industry and potentially examine international trade implications.Objective 3. Data for this objective started to be collected in 2015. It included growers' self-assessed level of infection and impact of HLB in their operations. We will continue to collect data to assess the impact of HLB on citrus operations in Florida.Objective 4. To evaluate the economic feasibility of emerging technologies we will conduct benefit cost analyses under the standard assumption that growers' objective is to maximize profit. Typically, the expected economic benefit to citrus growers would be increased profitability as a result of increased production due to HLB mitigation. The costs and benefits from the emerging technology will be compared to those arising from a status quo alternative.Objective 5. Provide a financial assessment of the practices and costs involved in blueberry and peach production in Florida, including the analysis of different market scenarios to determine their potential profitability to growers.
Target Audience
The target audience reached during this period was citrus growers in Florida, as well as other citrus industry stakeholders.
Changes / Problems
Nothing Reported
Training & Professional Development
I delivered the following presentationas part of in-training services:Budgeting and Profitability Analysis of Perennial Crops. FRE In-Service Training on enterprise budgeting. April 5, 2018
Dissemination Streams
To disseminate the findings and generate change in knowledge, which allows for better decision-making, I participated in field days, delivered presentations in extension meetings and trade shows; the total attendance to those was 2,353. In addition, I have published several extension and outreach documents. The documents are uploaded into the CREC extension economic website, which received 137,538 hits in 2018. I also had 56 consultations combining meetings, office visits, telephone calls, and emails. The funding is key to continue these efforts in the current challenging times for Florida citrus growers.
Next Reporting Steps
I plan on continuing collecting data from growers and other industry stakeholders to document and analyze the annual changes in practices, costs, and returns of growing citrus in Florida.
Target Audience
The target audience reached during this period was citrus growers in Florida, as well as other citrus industry stakeholders.
Changes / Problems
Nothing Reported
Training & Professional Development
I delivered two presentations as part of in-training services.
Dissemination Streams
To disseminate the findings and generate change in knowledge, which allows for better decision-making, I participated in field days, delivered presentations in extension meetings and trade shows; the total attendance to those was 2,271. In addition, I have published several extension and outreach documents. The documents are uploaded into the CREC extension economic website, which received 111,511 hits in 2017. I also had 106 consultations combining meetings, office visits, telephone calls, and emails. The funding is key to continue these efforts in the current challenging times for Florida citrus growers.
Next Reporting Steps
I plan on continuingmy efforts to collect data from growers and other industry stakeholders to document and analyze the changes in practices, costs, and returns of growing citrus in Florida. <br><br>
<br>What was accomplished under these goals? In the current era of HLB, nearly all groves in Florida are affected by HLB. Therefore, enterprise budgets constitute a key industry benchmark to analyze how citrus production costs are affected by changing input prices and practices. Moreover, as researchers develop solutions to cure or better manage the effects of HLB, enterprise budgets are key to determine whether those proposed solutions are economically feasible on a commercial scale.During 2017, I continued my efforts to collect data from growers and other industry stakeholders to document and analyze the changes in practices, costs, and returns of growing citrus in Florida. I disseminated the findings both by publishing manuscripts and delivering presentations to the target audience. Objective 1. Estimate the costs and returns associated with citrus production and fresh packing in Florida and analyze how those costs and returns will be affected by changing input prices and new production technologies. Major activities completed / experiments conducted: Analyzed the collected data on cost of production to document changes since last season. Data collected: Collected data for cost of production, packing charges, and harvesting charges by surveying growers, packers and harvesting companies Summary statistics and discussion of results: The average costs of production per acre for Processed Oranges in Southwest Florida in 2016/17 was $2,376, showing only a marginal increase from last season. The delivered-in breakeven price for covering the total costs of production with yields at 225 boxes per acre was $2.32 per pound solids. As fruit production decreases, harvesting costs continue to increase. Lower volume of fruit per tree reduces harvesting efficiency and thereby increases costs, especially that of picking and roadsiding. Efficiency is impacted by having smaller-sized fruit, another consequence of HLB. Key outcomes or other accomplishments realized: Published 4 manuscripts documenting the changes in the Florida citrus industry. Delivered 3 presentation to share the findings Objective 2. Collect data on citrus production costs from Brazil and any other relevant citrus growing regions by creating a network of contacts. Major activities completed / experiments conducted: I contacted and visited with Brazilian researchers Data collected: I collected data on the impact of HLB on Brazilian citrus production and on the innovative strategies growers use to combat the disease Summary statistics and discussion of results: The average incidence of HLB in 2017 was 16.73%. Many of the larger growers in the southwest citrus production region of the State of São Paulo have found it economically beneficial to work with nearby property owners in their management of psyllids and HLB. Their strategy addresses both psyllids and HLB in a regional approach and can extend as far as 1.25 to 3 miles beyond their property; in one case a grower hopes to extend this management plan as far as 12 miles over time. Key outcomes or other accomplishments realized: Published 1 manuscript documenting the changes in the Florida citrus industry. Objective 3. Collect data to assess the impact of HLB infection on citrus operations in Florida Major activities completed / experiments conducted: Analyzed the impact of HLB on theFlorida citrus industry in last 15 years, particularly on the reduction in number of growers Data collected: I collected historical data on the number of growers in the last 15 years Summary statistics and discussion of results: The reduction in number of growers has been larger in both absolute numbers and percentage terms for smaller operations Key outcomes or other accomplishments realized: Delivered 2 presentation to share the findings Objective 4. Determine the economic feasibility of emerging technologies and management strategies that are developed to mitigate the impacts of HLB. Major activities completed / experiments conducted: Analyzed data to establish whether individual growers experienced an increase in yields in their groves one year after starting the use of streptomycin and oxytetracycline. Data collected: Collected data on bactericide use. Also collected data on and the pattern of substitutions of bactericides with other grove cultural programs. Summary statistics and discussion of results: I learned that insecticides, coordinated sprays, and dry fertilizer were the programs that they had reduced the most. 58% of growers who cut back on their programs reduced insecticides applications, and 43% out of those - the largest percentage across all programs - did so by more than 10%. In addition, 45% of growers reported they reduced coordinated or Citrus Health Management Areas (CHMA) sprays; 23% of them by more than 10%. The largest percentage of growers (64%) reduced the cost of dry fertilizer; 36% of them by more than 10%. Key outcomes or other accomplishments realized. Published 3 manuscripts, 2 of which include the work I did with the data collected reported last year Objective 5. Provide a financial assessment of the practices and costs involved in blueberry and peach production in Florida, including the analysis of different market scenarios to determine their potential profitability to growers. Major activities completed / experiments conducted: Estimated establishment and production costs, as well as the potential profitability of a peach orchard in Florida Data collected: Collected quotes for chemicals, for the investment in machinery and irrigation from machinery dealers and companies specialized in irrigation. The cultural practices were based on a combination of recommendations from UF/IFAS Extension personnel and experience of peach growers that provided feedback Summary statistics and discussion of results: Found the initial investment required for a peach operation in Florida to be $6,457 per acre; the expense in land preparation and planting 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 pounds of marketable fruit per acre during its most productive years obtains a positive NPV when the average price is $2.38 per pound. Key outcomes or other accomplishments realized. Published 1 manuscript documenting the changes in the Florida citrus industry. <br><br><b>Publications</b><br>
Target Audience
The target audience reached during this period was citrus growers in Florida, as well as other citrus industry stakeholders.
Changes / Problems
Nothing Reported
Training & Professional Development
Nothing Reported
Dissemination Streams
To disseminate the findings, I participated in field days and delivered presentations in extension meetings and trade shows; the total attendance to those was 1,551. In addition, I have published several extension and outreach documents. The documents are uploaded into the CREC extension economic website, which received 100,423 hits in 2016. I also had 83 consultations combining office visits, telephone calls, and emails.
Next Reporting Steps
Nothing Reported
<br><br>
<br>What was accomplished under these goals? Given that nearly 100% of all groves in Florida are currently estimated to be infected with HLB and that to date there is no cure or an economically viable option for managing HLB infected trees, it is uncertain whether growers can manage the disease while maintaining a production level that returns a profit. Thus, the Florida citrus industry, which is estimated to contribute almost $11 million to the state's economy, needs a benchmark on costs and practices of production not only to analyze how costs are affected by changing input prices and practices but also because as researchers develop solutions to manage HLB, determining whether they are economically feasible on a commercial scale is key for growers. In 2016, collected data to document and analyze the changes in cultural practices and costs of growing citrus in Florida. In addition, also collected and analyzed data that provided growers with information regarding alternative crops. To disseminate the findings and generate change in knowledge, which allows for better decision-making, I participated in field days and delivered presentations in extension meetings and trade shows; the total attendance to those was 1,551. In addition, I have published several extension and outreach documents. The documents are uploaded into the CREC extension economic website, which received 100,423 hits in 2016. I also had 83 consultations combining office visits, telephone calls, and emails. The funding is key to continue these efforts in the current challenging times for Florida citrus growers. Objective 1. Major activities completed / experiments conducted:Published cost of production data for 2014/15 and conducted survey to collect data for 2015/16 Data collected:Collected data for cost of production, packing charges, and harvesting charges by surveying growers, packers and harvesting companies Summary statistics and discussion of results:The average costs of production per acre for Processed Oranges in Southwest Florida in 2015/16 was $2,327.98, down $87.86 from last season. The delivered-in breakeven price for covering the total costs of production with yields at 250 boxes per acre was $2.18 per pound solids.Regarding harvesting costs, roadsiding for fresh fruit showed a 47% increase relative to the previous season. The average roadsiding for processed fruit increased by 22%. For processed fruit, picking went up 29%, on average, compared to last season. The general increase in harvesting charges is due to the lower fruit production during the 2015/16 season. Lower volume of fruit per tree reduces harvesting efficiency and thereby increases costs, especially that of picking and roadsiding. Efficency is impacted by having smaller-sized fruit, another consecuence of HLB. Key outcomes or other accomplishments realized:Published 5 manuscripts documenting the changes in the Florida citrus industry.Delivered two presentation to share the findings Objective 2. Major activities completed / experiments conducted:Icontacted and established working relationships with Brazilian researchers to eventually start collaborating Data collected:Nothing to reportyet Summary statistics and discussion of results:Nothing to reportyet Key outcomes or other accomplishments realized:Nothing to reportyet Objective 3. Major activities completed / experiments conducted:Conducted a survey of individuals involved in citrus production in Florida to estimate current level of impact of HLB Data collected:Obtained 76 surveys from growers who operated 156,614 acres, which accounts for approximately 30% of the totalacreage devoted to citrus in Florida. Summary statistics and discussion of results:Found that, on average, the current percentage of HLB-infected acres and HLB-infected trees in a citrus operation in Florida are 90% and 80%, respectively. Furthermore, compared to pre-HLB levels, the average percentage of HLB-related yield loss that growers attribute to HLB is 41%. In addition, citrus operations in central Florida experience a 12% higher yield loss to HLB relative to those in southwest Florida. Key outcomes or other accomplishments realized:We provided the first growers' survey-based estimates of both the level of HLB infection in Florida and the impact of HLB on citrus operations in Florida. Objective 4. Major activities completed / experiments conducted:Estimated the differential benefit of a well-performing Citrus Health Management Area (CHMA) Data collected: Farm-level production data from a grower that owns blocks in two different CHMAs Summary statistics and discussion of results:Estimated the differential benefit a well-performing CHMA can provide is $1,231 per acre Key outcomes or other accomplishments realized:After showing growers the results of this management approach, 30% of the participants positively changed their survey responses regarding how likely they are to coordinate insecticide sprays. The combined area managed by the growers that participated in the experiment was 153,000 acres. Thus, the potential economic benefit resulting from higher CHMA participation levels driven only by that30% of growers that attended the meeting and presumably could change their behavior can be estimated at $56 million. Objective 5. Major activities completed / experiments conducted: Estimated establishment and production costs, as well as the potential profitability of a southern highbush blueberry orchard in Florid Data collected:Collected quotes for chemicals, for the investment in machinery and irrigation from machinery dealers and companies specialized in irrigation. The cultural practices were based on a combination of recommendations from UF/IFAS Extension personnel and experienceof blueberry growers that provided feedback Summary statistics and discussion of results:Found the initial investment required for a blueberry operation in Florida to be $19,598 per acre; the expense in land preparation andplanting alone in year one is $9,853. Variable and fixed costs in years 2 through 10 range from $8,340 to $9,028 per acre. As anexample of profitability, we found that an operation yielding 6,000 (8,000) pounds of marketable berries per acre during its mostproductive years has a positive NPV when the average price is $4.90 ($4.30) per pound using a discount rate of 10%. Key outcomes or other accomplishments realized:Put together an extension manuscript summarizing findings, which has been accepted for publication <br><br><b>Publications</b><br>