Extension/Research Information

Ohio Enterprise Budgets

Ohio State University Extension
Department of Agricultural, Environmental, and Development Economics
The Ohio State University


1999 PICKLING CUCUMBER PRODUCTION BUDGET
Hand Harvest


--

ITEM

-

EXPLANATION

PRICE PER

-----YIELD (cwt/A)------

YOUR

-- - - - - -

UNIT

172 230 288

BUDGET

RECEIPTS 1

Cucumbers

20%

#1

$23.00

/cwt

$791

$1,058

$1,325

50%

#2

$7.75

/cwt

667

891

1,116

30%

#3

$3.50

/cwt

181

242

302

TOTAL RECEIPTS

1,638

2,191

2,743

VARIABLE COSTS

Seed

2.5

lb

11.00

/lb.

28

28

28

Fertilizer 2

Starter (8-25-3)

225

lb

0.10

/lb

23

23

23

N

100

lb

0.23

/lb

23

23

23

P2O5

125

lb

0.28

/lb

35

35

35

K2O

225

lb

0.13

/lb

29

29

29

Lime

2000

lb

14

/ton

14

14

14

Pesticides 3

102

102

102

Custom Spraying

5

sprays

5.5

/A

28

28

28

Bee Rental

0.8

hive/A

40

/hive

32

32

32

Hired Labor (pre-harvest) 4,5,6

30

hours

6

/hr

180

180

180

Hired Labor (harvest) 4,5,6

60%

of gross

983

1314

1646

Employer Costs

154

226

298

Unemploy. Insurance

73

76

89

Hail Insurance 7

16

/A

16

16

16

Hampers

75

/A

2.50

/hmpr

188

188

188

Fuel, Oil, Grease

17

17

17

Repairs

21

21

21

Transportation for Labor

3

3

3

Miscellaneous 8

6

6

6

Int. on Oper. Cap. 9

6

mo.

9.0%

87

105

124

TOTAL VARIABLE COSTS

-Per Acre

2040

2465

2900

-Per Cwt

11.86

10.72

10.07

FIXED COSTS

Housing Charge 10

446

446

446

Operator Labor Charge

7

hours

7.50

/hr

53

53

53

Mach. And Equip. Charge

57

57

57

Land Charge

Rent

100

150

200

Management Charge

5% of Gross

82

110

137

TOTAL FIXED COSTS

737

815

893

TOTAL COSTS

-Per Acre

2777

3280

3793

-Per Cwt

16

14

13

RETURN ABOVE VARIABLE COSTS

(402)

(274)

(157)

RETURN ABOVE TOTAL COSTS

(1139)

(1089)

(1049)


1

Receipts include production payment plus a management fee paid by the processor to grower. At 50 lbs/bu, yield is equal

to 8.6, 11.5, and 14.4 tons/acre.

2

Assumes only maintenance fertilizer is needed.

3

See current OSUE bulletins 472, 789, and 672 for recommended pesticides.

4

Pre-harvest labor is estimated at 30 hours/acre at $6.00/hour. Harvest labor cost is 50% of gross receipts plus 10%

of gross receipts for field supervision.

5

Employer costs for employees include Social Security and Workers Compensation

6

Federal and State unemployment insurance is required for some operations.

7

Hail insurance would be $1,000 per acre with 15% deductible

8

Includes supplies, utilities, soil tests, small tools, check-off fund.

9

Does not include interest on harvesting costs, inspections costs, plant or seed costs

Interest charges are for 6 months at 9% interest.

10

Housing charge can be estimated at $45/ft2 x 105 ft2 per person x 15 workers per unit = $70,875 x 20.75% overhead x

50% usage on cucumbers= $7,353. Trash collection, utilit., land charge, water @ $2,000 x 50% usage on cucumbers= $1,000

$7,353 + $1,000 = $8,353/ 15 workers per unit x 0.8 workers per acre = $446 per harvested acre. Some cost sharing on

housing investment is available through Agr. Labor Camp Improvement funds (Ohio 614-466-2285)


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