Receipts per Acre Receipts per acre were determined by multiplying the average yield by the season adjusted price for each crop. It should be noted that the yields represent the best estimate of the marketable yields expected by a commercial grower. The 1996 season adjusted prices and in some cases, weighted average prices, were used. Costs per Acre A.2.1. Materials and Related Services Cost of materials and related services make up a major component of variable costs involved in the farming operation.
Chemical usage is based on conventional practices.
Given the great interest in reducing chemical inputs in agricultural production, the chemical input section is itemized in detail, enabling the grower to estimate changes in net profits based on changes in chemical use. Input prices for 1996 reflect grower rates, which are the discounted prices applicable to large volume purchases. Operator labor is used primarily for operating machines and for tasks which require a high level of skill. This type of labor is generally provided by the owner or farm family members. Regular hired labor is somewhat less skilled and used primarily for the performance of general farm operations such as equipment operation, pruning, etc.