Simulated net income for Georgia grown satsuma mandarins
Mahr, Andrew P
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This paper provides an interactive crop budget for producers of Satsuma Oranges in citrus zone A of Georgia as designated by the University of Georgia Cooperative Extension. This paper offers information on the history and marketing of Satsuma Mandarins in the Southeastern United States for prospective producers that are unfamiliar with the crop. Most importantly, this paper incorporates uncertainty within annual prices, yields, and labor costs affecting the farm business. Simulations are used to randomize price, yield, and labor in a competitive market to provide current and prospective growers with feasible numbers for their return on invested capital. Expenditures are determined on a per acre basis. Probability of profit for Satsuma producers was determined to be 86.98 percent. Net present value was found to be $43,633.21 with a four percent discount rate and return on investment was 386.58 percent after simulating over the 12 year mature production horizon.