Chili Pepper Production Practices and Sample Costs

Table 1. COSTS PER ACRE TO PRODUCE CHILI PEPPER
Coachella Valley - 1995/1996

• Labor Rate:

  $6.70/hr. machine labor

  $6.70/hr. non-machine labor

• Interest Rate: 11.61%

• Yield per Acre: 1200 Boxes

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TR>

Cash and Labor Costs per Acre
Operation	Operation Time (Hrs/A)	Labor Cost	Fuel, Lube & Repairs	Material Cost	Custom/ Rent	Total Cost	Your Cost
Preplant:
Chop Prior Crop Residue	0.33	3	2	0	0	4
Disc	0.44	4	4	0	0	7
Plow	0.80	6	5	0	0	12
Disc 2X	1.40	11	12	0	0	23
Leveling - Land Plane	0.90	7	6	0	0	14
Custom Manure Application	0.00	0	0	0	75	75
List	0.50	4	4	0	0	8
Pre-Irrigation	1.38	20	0	35	0	55
Roll cultivate beds	0.30	2	2	0	0	5
Shape Beds - mulch & t-tape	1.20	26	10	290	0	326
Plumb layflat & irrigate	1.38	20	0	35	0	35
Punch holes in mulch	1.00	8	4	0	0	12
TOTAL PREPLANT COSTS	9.62	112	48	360	75	596
Cultural:
Transplant peppers	13.20	88	0	436	0	524
Fertigation - Drip	5.52	37	0	82	0	119
Clip Weed seedlings	4.40	29	0	0	0	29
Cultivate Beds	0.50	4	3	0	0	7
Irrigation - Drip	5.52	37	0	40	0	77
TOTAL CULTURAL COSTS	29.14	196	3	558	0	757
Harvest:
Hand Pick & Pack Peppers	0.50	4	3	3720	0	3727
Ship to LA Market	0.20	2	1	0	600	602
LA Broker Commision	0.00	0	0	0	1560	1560
TOTAL HARVEST COSTS	0.70	6	3	3720	2160	5889
Interest on operating capital @ 11.61%						85
TOTAL OPERATING COSTS/ACRE		313	55	4638	2235	7326
TOTAL OPERATING COSTS/BOX						6.11
CASH OVERHEAD:
Land Rent						133
Office Expense						30
Liability Insurance						25
Sanitation						0
Property Taxes						11
Property Insurance						8
Investment Repairs						54
TOTAL CASH OVERHEAD COSTS						261
TOTAL CASH COSTS/ACRE						7588
TOTAL CASH COSTS/BOX						6.32
		Annual Cost
NON-CASH OVERHEAD:	Per Producing Acre	Depreciation	Interest @ 3.72%
Investement:
Shop Building	133	6	3			9
Shop Tools	44	2	1			3
Fuel Tanks & Pumps	18	1	0			1
Irrigation System	1000	30	20			80
Equipment	811	64	17			80
TOTAL NON-CASH OVERHEAD COSTS	2006	133	41			174
TOTAL COSTS/ACRE						7761
TOTAL COSTS/BOX						6.47

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