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Chili Pepper - Table 1

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
COSTS PER ACRE TO PRODUCE CHILI PEPPER
  Cash and Labor Costs per Acre  
OperationOperationTime (Hrs/A)Labor CostFuel, Lube & RepairsMaterial CostCustom/RentTotal CostYour 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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