Chili Pepper Production Practices and Sample Costs

Table 2. COSTS AND RETURNS 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%

	Quantity/Acre	Unit	Price or Cost/Unit	Value or Cost/Acre	Your Cost
GROSS RETURNS
Jalapeno	1200	Box	6.50	7800
TOTAL GROSS RETURNS FOR CHILI PEPPER				7800
OPERATING COSTS:
Custom:
Chicken Manure	1.00	Acre	75.00	75
Water:
Water - Pumped	30.00	AcIn	5.00	150
T-tape 4 ml 12"	7260.00	Each	0.01	73
Plastic 1.25 60" BE	7260.00	Each	0.03	218
Transplant:
Pepper Transplant	14520.00	Each	0.03	436
Fertilizer:
8/8/08	40.00	Gal	1.05	42
Harvest:
Pick & Pack	1200.00	Box	2.60	3120
Container:
Packing Carton	1200.00	Box	0.50	600
Contract:
Ship to LA Market	1200.00	Box	0.50	600
LA Broker Comm	1200.00	Box	1.30	1560
Labor (machine)	12.98	hrs	6.70	87
Labor (non-machine)	33.80	hrs	6.70	226
Fuel - Gas	1.00	gal	1.15	1
Fuel - Diesel	24.99	gal	1.00	25
Lube				4
Machinery repair				25
Interest on operating capital @ 11.61%				85
TOTAL OPERATING COSTS/ACRE				7326
TOTAL OPERATING COSTS/BOX				6.11
NET RETURNS ABOVE OPERATING COSTS				474
CASH OVERHEAD COSTS:
Land Rent				133
Office Expenses				30
Liability Insurance				25
Sanitation				0
Sprinkler Pipe				130
Property Taxes				11
Property Insurance				8
Investment Repairs				54
TOTAL CASH OVERHEAD COST/ACRE				261
TOTAL CASH COSTS/ACRE				7588
TOTAL CASH COSTS/BOX				6.32
TOTAL NON-CASH OVERHEAD COSTS (DEPRECIATION & INTEREST):
Shop Building				9
Shop Tools				3
Fuel Tanks & Pumps				1
Irrigation System				80
Equipment				80
TOTAL NON-CASH OVERHEAD COST/ACRE				174
TOTAL COSTS/ACRE				7761
TOTAL COSTS/BOX				6.47
NET RETURNS ABOVE TOTAL COSTS				39

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