Extension/Research Information

Ohio Enterprise Budgets

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


1999 PROCESSING TOMATO PRODUCTION BUDGET

Machine Harvest


ITEM

EXPLANATION

PRICE PER

-------YIELD (ton/A)-------

YOUR

UNIT

BUDGET

21

28

35

RECEIPTS

Tomatoes

$80.00

/ton 1

$1,680

$2,240

$2,800

VARIABLE COSTS

Plants

13,000

/A.

22.00

/lb.

286

286

286

Fertilizer 2

Starter (10-34-0)

5

gal.

1.1

/gal

6

6

6

N (lb.)

60

lb.

0.23

/lb.

14

14

14

P2O5 (lb.)

175

lb.

0.28

/lb.

49

49

49

K2O (lb.)

275

lb.

0.13

/lb.

36

36

36

Lime (lb.)

1000

lb.

14

/ton

7

7

7

Pesticides 3

200

200

200

Custom Spraying

8

sprays

6

/A

48

48

48

Hired Labor 4

Setting

7

hr.

6

/hr.

42

42

42

Hoeing

7

hr.

6

/hr.

42

42

42

Sorting

15

hr.

6

/hr.

90

90

90

Hail Insurance 5

20

/A

20

20

20

Inspection

0.5

/ton

11

14

18

Fuel, Oil, Grease 6

33

33

33

Repairs

51

51

51

Custom Haul

7

/ton

147

196

245

Unemploy. Insurance 7

174

/A.

4.5

%

8

8

8

Transportation for Labor 8

6

6

6

Miscellaneous 9

8

8

8

Int. on Oper. Cap. 10

6

mo.

9.0

%

26

26

26

TOTAL VARIABLE COSTS

-Per Acre

1128

1180

1233

-Per Ton

53.71

42.16

35.23

FIXED COSTS

Housing Charge 11

111

111

111

Labor Charge

14

16

18

7.50

/hr.

105

120

135

Mach. And Equip. Charge

325

325

325

Land Charge

Rent

100

150

200

Management Charge

5% of Gross

84

112

140

TOTAL FIXED COSTS

725

818

911

TOTAL COSTS

-Per Acre

1853

1998

2144

-Per Ton

88.24

71.37

61.26

RETURN ABOVE VARIABLE COSTS

552

1060

1567

RETURN ABOVE TOTAL COSTS

(173)

242

656


1

Estimated price/ton is for canning (peeler) tomatoes. Price for paste tomatoes would be about 15% less.

2

Assumes only maintenance fertilizer is needed.

3

Various combinations and kinds of chemicals can be used. See current OSUE Bulletins 648, 701,

and 672 for recommendations. Intervals will vary depending on product usage.

4

Labor rate includes Social Security and Workers compensation.

5

Hail insurance is estimated at $1,200 coverage per acre with a 15% deductible.

6

Machine costs reflect the expenses of a bedder, harvester, dump cart, tractor, and transplanter.

Irrigation equipment is not included.

7

Federal and state unemployment insurance is required for some operations. The rating is paid

on first $9000 paid per worker.

8

Producers may reimburse out-of-state workers for transportation costs. One estimate is 1600 miles/ 4 acres

out-of-state worker x 50% usage on tomatoes at $0.032/mile = $6 per acre.

9

Includes supplies, utilities, soil tests, small tools, etc...

10

Does not include interest on harvesting costs, inspection costs, plant or seed costs, or hauling cost.

Interest charges are for 6 months at 9% interest.

11

Housing cost 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 tomatoes = $7,353. Trash collection, utilities, land charges,

water @ $2,000 x 50% usage on tomatoes = $1000

$7,353 + $1,000 = $8,353/15 workers per unit x 18 workers per machine/ 90 acres per machine = $111

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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