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Chili Pepper - Table 2

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%
COSTS AND RETURNS TO PRODUCE CHILI PEPPER
 Quantity/AcreUnitPrice or Cost/UnitValue or Cost/AcreYour Cost
GROSS RETURNS
  Jalapeno1200Box6.507800 
TOTAL GROSS RETURNS FOR CHILI PEPPER 7800 
 
OPERATING COSTS:
Custom:
Chicken Manure1.00Acre75.0075 
Water:
Water - Pumped30.00AcIn5.00150 
T-tape 4 ml 12"7260.00Each0.0173 
Plastic 1.25 60" BE7260.00Each0.03218 
Transplant:
Pepper Transplant14520.00Each0.03436 
Fertilizer:
8/8/0840.00Gal1.0542 
Harvest:
Pick & Pack1200.00Box2.603120 
Container:
Packing Carton1200.00Box0.50600 
Contract:
Ship to LA Market1200.00Box0.50600 
LA Broker Comm1200.00Box1.301560 
Labor (machine)12.98hrs6.7087 
Labor (non-machine)33.80hrs6.70226 
Fuel - Gas1.00gal1.151 
Fuel - Diesel24.99gal1.0025 
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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