Lettuce Production Practices and Sample Costs

Table 2. COSTS AND RETURNS TO PRODUCE LOOSE LEAF LETTUCE
Coachella Valley - 1996

• Labor Rate:

  $8.38/hr. machine labor

  $7.37/hr. non-machine labor

• Interest Rate: 11.61%

	Quantity/Acre	Unit	Price or Cost/Unit	Value or Cost/Acre	Your Cost
GROSS RETURNS
Lettuce	875	Box	6.20	5425
TOTAL GROSS RETURNS FOR LOOSE LEAF LETTUCE				5425
OPERATING COSTS:
Rent:
D-8 Crawler Rental	1.00	Acre	25.00	25
Custom:
Laser Level	1.00	Acre	15.00	15
Chicken Manure	1.00	Acre	70.00	70
Soil Testing	1.00	Acre	2.00	2
Bird Control	1.00	Acre	36.00	36
Thinning & Weeding	1.00	Acre	160.00	160
Water:
Irrigate	48.00	AcIn	3.57	171
Insecticide:
Admire	10.00	Oz	4.19	42
Dipel 2x	10.00	Lb	12.13	121
Ladybugs	1.00	Gal	38.00	38
Seed:
Lettuce Seed	10.00	Lbs	12.50	125
Fertilizer:
Special F(3/35/0)	32.50	Gal	1.98	64
Liquid N	150.00	Gal	0.965	145
Herbicide:
Kerb 50W	3.00	Lbs	24.98	75
Contract:
PCA Field Check	1.00	Acre	20.00	20
Harvesting	875.00	Box	1.50	1313
Boxes	875.00	Box	1.00	875
Broker Commission	875.00	Box	0.62	542
Labor (machine)	13.27	hrs	8.38	111
Labor (non-machine)	24.40	hrs	7.37	180
Fuel - Diesel	99.46	gal	1.10	109
Lube				16
Machinery repair				96
Interest on operating capital @ 11.61%				85
TOTAL OPERATING COSTS/ACRE				4437
TOTAL OPERATING COSTS/BOX				5.07
NET RETURNS ABOVE OPERATING COSTS				988
CASH OVERHEAD COSTS:
Office Expenses				50
Liability Insurance				35
Land Rent				133
Management				105
Sprinkler Pipe				130
Sprinkler Pump Rent				75
Property Taxes				3
Property Insurance				2
Investment Repairs				1
TOTAL CASH OVERHEAD COST/ACRE				534
TOTAL CASH COSTS/ACRE				4970
TOTAL CASH COSTS/BOX				5.68
TOTAL NON-CASH OVERHEAD COSTS (DEPRECIATION & INTEREST):
Shop Building				1
Shop Tools				1
Fuel Tanks & Pumps				2
Surface Pipe				0
Equipment				91
TOTAL NON-CASH OVERHEAD COST/ACRE				94
TOTAL COSTS/ACRE				5065
TOTAL COSTS/BOX				5.79
NET RETURNS ABOVE TOTAL COSTS				360

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