UF/IFAS economist Ariel Singerman shared research on the economics of CUPS and IPCs at the Citrus Expo.

Florida citrus growers have shown a lot of interest in growing Citrus Under Protective Screens (CUPS) and Individual Protective Covers (IPCs), but wonder about the economics of CUPS and IPCs. The Citrus Expo saw a presentation by UF/IFAS economist Ariel Singerman on the potential savings of both. The details were shared in a Citrus Industry article. See a summary below.

The Economics of CUPS and IPCs

Both IPCs and CUPS use a protective screen to keep out the Asian citrus psyllid, the insect vector that spreads citrus greening. CUPS utilize a giant tent-like screen that citrus trees are grown under, and IPCs are a small mesh bag that are used to protect individual citrus trees while they are still small.

According to the article, “Singerman calculated that a CUPS grower who insures a structure costing $45,000 per acre containing high-density plantings could achieve an internal rate of return of 6.59 percent over an 8-to-9-year period.” However, Singerman added that, “If the grower decides to self-insure, and the cost of the structure is $30,000 per acre, that internal rate of return would be close to 15 percent…” With the assumptions Singerman made, per the article, growers would realize a profit.

Figuring the economics of IPCs is more challenging because CUPS have been in use for a lot longer. Singerman explained that, “The experiment only started about 1.5 years ago, so there is still a lot of uncertainty around what is going to be the benefit of using those bags and what are the costs. It is important to realize that they (growers) would be better off just making the calculations for themselves … They know better than I what they do in their own groves.”

He explained that the costs of IPCs could be offset by a reduction in chemical use. “If it’s (IPC) for a reset, then it is only going to be profitable … if they (growers) have high savings; that is, if they use a lot less chemicals by using the bags.

The economics of IPCs are more challenging. “The experiment only started about 1.5 years ago, so there is still a lot of uncertainty around what is going to be the benefit of using those bags and what are the costs,” Singerman said. “It is important to realize that they (growers) would be better off just making the calculations for themselves … They know better than I what they do in their own groves.”

Singerman did say that using the numerous assumptions he made, “If it’s (IPC) for a reset, then it is only going to be profitable … if they (growers) have high savings; that is, if they use a lot less chemicals by using the bags. Under a solid-set scenario, it’s profitable under a two-use bag scenario and also under a one-use bag, but only if they achieve high (chemical) savings.”

“Under a solid-set scenario,” he added, “it’s profitable under a two-use bag scenario and also under a one-use bag, but only if they achieve high (chemical) savings.”

Griffin Fertilizer is committed to helping both growers and ranchers make sound agronomic and economic decisions in order to maximize the health of their grove and pasture. As a full-service custom dry & liquid fertilizer blender and crop protection product distributor, we will continue our mission to further advance Florida agriculture. For questions or concerns about your farm or pasture, contact us and one of our team will be in touch.