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
| Cash and Labor Costs per Acre | |||||||
|---|---|---|---|---|---|---|---|
| Operation | OperationTime (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% | ||||
| Investment: | |||||||
| 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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