Apples and Pears
jUt Mie Jfaod Riue* Valley, OtefM,
PROGRESS REPORT X
D. Curtis Mumford
Arthur E. Irish
j Press or radio announceVei^ oS"!
WtaArtD should not te^ade prior i I
SEP 16 1957
onUkL,*
Agricultural Experiment Station
Oregon State College
Corvallis
Circular of Information 580
August 1957
6W oj PtoducifiUf
Apples and Pears
PROGRESS REPORT X
D. Curtis Mumford, Agricultural Economist
Arthur E. Irish, Fieldman
This report is a summary of detailed cost records kept on 20 fruit farms in the Hood
River Valley for the year 1956 with comparable data for the 10-year period 1947-56. Cost
of production includes all items of expense incurred in producing and delivering the crop to
the door of packing house or processing plant. No packing house costs are included.
Apple Production Costs
The cost of producing apples in 1956 on 19 orchards averaged $1.19 per loose box and
$1.82 per packed-box basis, exclusive of packing and storage costs (table 1). Assuming packing and handling charges (from $1.25 to $1.50*), the total f.o.b. cost would be $3. 07 or more
per packed box.
Table 1. APPLES: Cost of Production
(Does not include cost of storage, boxes, packing, and shipping)
Year
Ten-year
Distribution
average 1947-1956
Item
1956
of costs
Number of orchards in study
Acreage of apples per orchard
Yield per acre, loose boxes
Yield per acre, packed boxes
Costs per loose box for:
Preharvest labor
Picking
Other harvest
Total labor
Materials
General expense
Depreciation on equipment
Interest on investment (5 per cent)...
Total cost per loose box
Cost per packed-box basis.
-
19
13.3
411
268
22.4
15.0
565
348
_
-
Dollars
.35
.15
.07
.57
.21
.22
.07
.12
1.19
Dollars
.28
.13
.06
.47
.14
.15
.06
.09
.91
Per cent
30.7
14.3
6.6
51.6
15.4
16.5
6.6
9.9
100.0
1.45
-
1.82
* The cost of sorting and handling all apples delivered to the packing house is charged against
the packed fruit, which usually comprises from 60 to 85% (by weight) of fruit delivered.
Table 2. APPLE PRODUCTION COSTS
(Does not include cost of storage, boxes, packing, and shipping)
1956
Item
Labor per acre
Pruning.
30.8
3.2
Brush removal
Hand cultivating
1.0
Machine cultivating
5.6
Fertilizing; mowing
2.3
Irrigating
,
10.0
Spraying
4.1
Thinning
».....
40.9
Propping; cleanup
6.6
Maintenance
17.0
Supervision.
6.4
127.4
Total preharvest
Picking
61.9
Other harvested
24.9
214.2
Total labor
Materials per acre
Fertilizers
Irrigation water
Sprays
Miscellaneous supplies
Total materials
General expense per acre
Building repair
Machinery repair
Machine hire
Gas and oil
Electricity; water; wood fuel; office........
Liability, fire, and motor insurance
Property taxes
Gash to operate,
Total general expense
Depreciation per acre
Buildings (not including operator's dwelling)
Machinery
Total depreciation
Interest per acre (5 per' cent)
Buildinga
Machinery
Orchard
Total interest
Total cost per acre
Cost per loose box
,
Cost per packed box
Acres per orchard,
Loose boxes produced per acre. .
Packed boxes produced per acre.
Cost
Man hours
1947-1956
33.7
4.4
1.8
4.1
2.0
11.5
9.0
42.7
7.1
22.5
8.6
147.4
84.5
30.2
262.1
1956
1947-1956
$ 33.74
3.51
1.00
6.96
2.62
12.15
5.16
42.46
7.51
21.14
9.52
$145.77
$ 61.89
28.54
$236.20
$ 34.24
4.40
1.72
4.51
2.1/7
12,45
9.74
40.35
7.30
25.10
U. 64
ii53.62
ir73.94
33.53
$261.09
$ 17.61
7.32
41.64
19^54
$ 86.11
$14.72
6.21
41.19
13.21
$ 75.33
$
4.69
11.53
4.77
16.4$
9.80
lOvlO
10.00
i 88.61
4.52
10.51
6.28
13.56
S.37
7.90
16.98
10.00
78.12
8.12
22.14
$ 30.26
9.53
21.39
7.22
9.14
30.93
47.29
5488.47
1.19
1.82
13.3
411
268
7.96
9.73
30.13
$ 47.82
493.28
.91
1.45
14.9
565
348
$
$
Pear Production Costs
Winter pears
The cost of producing winter pears in 1956 on 20 orchards averaged $0.87 per lug-box
and $0.97 per packed-box basis, exclusive of packing and storage costs (table 3). Assuming packing and handling charges (from $1.25 to $1. 50), the total f. o. b. cost would be $2.22
or more per packed box.
Table 3. WINTER PEARS: Cost of Production
(Does not include cost of storage, boxes, packing, and shipping)
Item
Number of orchards in the study...,
Acreage of winter pears per orchard
Yield per acre, loose-lug boxes
Yield per acre, packed boxes.
Year
1956
20
8.1
580
518
Costs per loose-lug box for:
Preharvest labor
Picking
Other harvest
Total labor.
Materials
General expense
Depreciation on equipment
Interest on investment (5 per cent)
Total cost per loose-lug box...
Dollars
.21
.14
.06
.41
.16
.17
.05
.08
.87
Dollars
.27
.14
.06
.47
.18
.19
.08
.13
1.05
Per cent
25.7
13.4
5.7
44.8
17.1
18.1
7.6
lt.4
100.0
.97
1.18
-
Cost per packed-box basis
Ten-year
average 1947-1956
23.1
9.9
463
409
Distribution
of costs
-
Bartlett (cannery) pears
The cost of producing cannery pears in 1956 on 20 orchards averaged $1.58 per lug box and
$71.07 per ton (table 4). See table 6 for itemized costs.
Table 4. BARTLETT CANNERY PEARS: Cost of Production
(Includes all costs, delivered to the cannery door)
Item
Number of orchards in the study
Acreage bearing pears per orchard...
Yield per acre, loose-lug boxes
Yield per acre, tons
Year
1956
20
5.8
299
6.6
Costs per loose-lug box for;
Preharvest labor.
Picking
Other harvest
Total labor
Materials
General expense
Depreciation on equipment
Interest on investment (5 per cent)
Total cost per loose-lug box ..
Dollars
.51
.13
.07
.71
.30
.31
.10
.16
1.58
Cost per ton
71.07
Ten-year
average 1947-1956
22.1
6.2
300
6.7
Dollars
.51
.12
.07
.70
.26
.28
.11
.18
1.53
68.44
Distribution
of costs
-
Per cent
33.3
7.8
4.6
45.7
17.0
18.3
7.2
11.8
100.0
-
Table 5. WINTER PEAR PRODUCTION COSTS
(Does not include cost of storage, boxes, packing, and shipping)
1956
Item
Labor per acre
Pruning
35.8
2.7
Brush removal
Hand cultivating
1.1
6.6
Machine cultivating
3
Fertilizing; mowing.
Irrigating
10
Spraying
4
Thinning
Propping; cleanup
9.
Maintenance
20.
Supervision
5.
Total preharvest
100.6
Picking
83.8
Other harvest
27.3
Total labor
211.7
Materials per acre
Fertilizers.
Irrigation water
Sprays
Miscellaneous supplies
Total materials
General expense per acre
Building repair
Machinery repair
Machine hire
Gas and oil
Electricity; water; wood fuel; office
Liability, fire, and motor insurance
Property taxes
Cash to operate
Total general expense
Depreciation per acre
Buildings (not including operator's dwelling)
Machinery
Total depreciation
Interest per acre (5 per cent)
Buildings
Machinery.
Orchard
Total interest
Total cost per acre
Cost per loose box
Cost per packed box.
Acres per orchard
Loose-lug boxes produced per acre.
Packed boxes produced per acre....
Cost
Man hours
1947-1956
41.5
3.7
1.5
3.7
2.3
10.3
7.4
.3
6.4
22.0
8.5
107.6
70.6
25.2
203.4
1956
1947-1956
$ 40.97
2.95
1.11
8.01
3.55
12.46
5.90
.30
10.99
25.30
8.52
$120.06
$ 83.83
31.66
$235.55
$ 42.70
3.75
1.39
4.11
2.49
10.98
8.18
.31
6.60
25.05
11.58
$117.14
$62.29
28.00
$207.43
17.79
6.74
43.11
24.60
$ 92.24
$ 15.16
6.10
41.51
16.77
$ 79.54
$
5.66
15.98
3.98
20.50
9.83
10.20
22.53
10.00
$ 98.68
4.99
11.43
5.42
16.08
8.84
8.51
17.61
10.00
$ 82.88
8.36
22.22
$ 30.58
$ 10,37
23.42
$ 33.79
6.58
8.53
31.65
$ 46.76
$503.81
.87
$
.97
8.
580
518
8.12
10.37
36.34
$ 54.83
$458.47
05
$
18
9.9
463
409
Table 6. BARTLETT PEAR PRODUCTION COSTS
(Includes all costs delivered to the cannery door)
Man hours
Item
1947-1956
1956
Labor per acre
Pruning
31.3
27.0
Brush removal
3.1
2.6
Hand cultivating....
1.5
3.2
Machine cultivating.
7.2
4.7
Fertilizing; mowing.
2.4
2.8
Irrigating
11.7
11..3
Spraying
4..9
7.5
Thinning
41..9
41.5
Propping; cleanup...
6. 1
7.1
Maintenance.
21..4
22.5
Supervision
5.4
7.6
Total preharvest
132.1
142.6
Picking
38.
40.6
Other harvest
18.
19.4
Total labor
TMTT
202.6
Materials per acre
Fertilizers.
Irrigation water
Sprays
Miscellaneous supplies
Total materials
General expense per acre
Building repair
Machinery repair
Machine hire
Gas and oil.
Electricity; water; wood fuel; office
Liability, fir6, and motor insurance
Property taxe$
Cash to operate
Total general expense
Depreciation per acre
Buildings (not including operator's dwelling)
Machinery.
Total depreciation
Interest per acre (5 per cent)
Buildings
Machinery.
Orchard
Total interest
Total cost per acre
Cost per loose-lug box
Cost per ton
Acres per orchard
Tons produced per acre
Loose boxes produced per acre.
Cost
1956
1947-1956
30.50
2.82
1.57
8.83
3.34
13.43
6.18
45.81
7.01
25.54
7.88
$152.91
$ 38.36
22.08
$213.35
32.53
3.14
3.06
5.22
2.58
12.74
8.22
39.98
7.35
25.68
10.21
$150.71
$ 35.71
21.40
$207.82
17.79
6.78
36.52
27.88
$ 88.97
$ 15.88
5.78
38.51
17.20
5.86
14.51
3.30
18.56
10.20
9.60
21.30
10.00
$ 93.33
$
$
$
7.65
21-71
$ 29.36
6.93
9.06
30.88
$ 46.87
$471.88
1.58
71.07
5.8
6.6
299
$ 77.37
5.31
10.83
5.96
15.43
9.19
8.51
17.49
10.00
$ 82.72
9.18
22.68
$ 31.86
8.06
10.64
32.77
$ 51.47
$451.24
$ 1.53
A. 68.44
6.2
6.7
300
$
Effect of Yield on Cost
In general, the higher the yield of fruit per acre — apples, winter pears, and Bartletts
the lower was the cost of production.
In 1956 the winter pear orchards yielded more boxes of fruit per acre than did the apple
orchards.
Table 7. YIELDS: Effect on Cost of Producing Apples and Pears
(Does not include costs of storage, boxes, packing, and shipping)
Yield of packed boxes per acre*
Range
Average
Number
of
orchards
Acres
per
orchard
Cost per
packed
box*
Apples
Less than 200 boxes
200 to 399 boxes
400 or more boxes
All orchards
173
26*2
412
268
5
11
3
19
13.7
12.3
16.8
13.3
$ 2.59
1.90
1.26
$ 1.82
Winter pears
Less than 200 boxes
200 to 399 boxes
400 or more boxes
All orchards
189
354
628
518
1
4
15
20
t
15.8
6.6
8.1
$ 2.32
1.18
0.89
$ 0.97
Bartlett pears
Less than 200 boxes
200 to 399 boxes
400 or more boxes
All orchards
137
287
605
299
5
10
5
20
4.1
8.1
2.8
5.8
$ 3.47
1.55
1.03
$ 1.58
♦Bartlett pears are figured as standard-lug boxes. (Field-run)
t Acreage not shown because only one orchard in this group.
Age of the Trees
The orchards typically have trees of varying ages, ranging from a year up to maturity
(table 8). The usual practice followed by most growers is to replace any dead or undesirable
trees and thus tend to perpetuate the orchards. Depreciation on orchard investment was
therefore not included in computing the cost of producing fruit.
Table 8. AGE OF TREES: Distribution on 20 Farms
Age of trees
Less than 6 years
6 to 9 years
10 years and over
Total, all trees
Apples
Per cent
20
14
66
100
Winter
pears
Per cent
23
4
73
100
Bartlett pears
Actual total Adjusted (bearing)
Per cent
Per cent
17*
42
22
17
41
61
100
100
* Not all young trees (1 to 5 years old) were included in the cost of production calculations because in some instances there was an abnormally high percentage of young Bartletts compared
to the other age groups. The general rule was to exclude the young trees from cost of production
calculations and, therefore, the acreages in excess of the normal.
Sixty-six per cent of the apple trees were 10 years old or over. Seventy-three per cent
of the winter pear trees were 10 years or older. In the case of the Bartlett pears however,
only. 41 per cent of the trees had come into full bearing. Forty-two per cent of the trees were
less than 6 years old. In order to make the 3 orchard enterprises studied more nearly comparable, certain portions of the latter group of trees (less than 6 years old) were excluded in
computing cost of production where they comprised an abnormally high proportion of total
Bartlett plantings. Thus, 39 per cent of the adjusted acreage of Bartlett pear trees included
in the cost study were less than full bearing age (under 10 years) and 61 per cent were in
full bearing.
Varieties
Newtown and Delicious (Red, Striped, and Golden) comprised the major portion of apple
acreages on farms studied (table 9). D'Anjou is the principal winter (storage) pear, and
Bartlett is the canning pear.
Table 9. VARIETIES OF TREES: Distribution on 20 farms
Apples on farms studied
Per cent
Variety
34.6
Newtown.
59.3
Delicious
2.7
Ortley.
1.6
Spitzenberg
Other
1.8
Total
100.0
|
| Variety
D'Anjou
Bosc
Easter
Other
Winter pears on farms studied
Per cent
87.4
0.9
11.3
0.4
Total
100.0
Orchard Investment
The capital value represented by the plantings was estimated by the growers from a conservative, long-term standpoint. Consideration was given in the appraisal to the age and variety of
trees, and to the location and character of the land.
Present (depreciated) values of buildings (other than operator's dwelling) and all other
equipment were ellocated proportionately to the various enterprises according to the use made
thereof (table 10).
Table 10. ORCHARD INVESTMENT: Average Value of Capital Investment
Item
Apples
Value
Value
per
per
acre
orchard
Orchard
$ 8,253
Buildings
1,926
Equipment
2,439
Cash for operating
2,668
Total investment $15,286
$
621
145
183
200
$ 1,149
Winter pears
Value
Value
per
per
acre
orchard
$
636
$ 5,151
1,071
133
1,389
172
1,628
200
$ 9,239
$1,141
Bartlett pears
Value
Value
per
per
acre
orchard
$
616
$ 3,574
803
138
181
1,049
1,158
200
$ 6,584
$ 1,135
Apple enterprise
Estimated capital worth, represented by the apple enterprises on the 19 farms in the
study, averaged $15,286 per orchard. More than half of the total capital investment for apple
production, or $621 per acre, was for the plantings.
Buildings (exclusive of the operator's dwelling) averaged $1,926 per apple orchard. The
equipment inventory, averaging $2,439 per apple orchard, includes irrigation equipment as
well as the machinery, tractors, trucks, and small tools. It does not include the automobile
(charge for the use of automobiles was computed on a mileage basis).
Winter pears
Investment for winter pears averaged $9,239 per orchard. Value of the plantings averaged
$5,151 per orchard or $636 per acre. Investment in buildings and equipment per acre of pears
was similar in amount to that shown for apple orchards in this study.
Bartlett (canning) pears
Investment for bearing pears averaged $6,584 per orchard. Plantings represented $3,574
each or $616 per acre.
Land Use
Size of the 20 farms in the study averaged 53.4 acres per farm (table 11). Orchard plantings
comprised 31.8 acres per farm. This was 85 per cent of the total tillable land including the
farmstead, or 60 per cent of the total farm acreage. Most cropland not in orchard was in hay
or used as pasture. Much untillable acreage is steep, rocky, and covered with trees and brush.
Table 11. FRUIT FARMS: Utilization of the Land on 20 Farms*
Land use
Applea
Bartlett pears
Winter pears
Other
Total orchard
Other cropland.......
Farmstead
Nontillable
Totals all land
Number
of
farms
19
20
20
5
20
9
20
16
20
Average
per farm
reporting
Acres
14.8
8.2
9.1
2.0
-
7.2
2.2
20.3
-
Average
acreage
per farm
Acres
14.0
8.2
9.1
0.5
31.8
3.3
2.2
16.2
53.4
Distribution
of total
farm area
Per cent
26
16
17
1
60
6
4
30
100
* Of the 31.8 acres in orchard, apple trees occupied 14.0 acres per farm. Total pear (winter
and canning) acreage slightly exceeded the apple orchards with 17.3 acres per farm.
Ten-Year Summary
The average annual yields per acre and the costs per box on the farms in this study have
been compiled for the 10-year period 1947-1956 (table 12).
Table 12. COST OF PRODUCING APPLES AND PEABS*
(Does not include costs of storage, boxes, packing, and shipping)
Number
of
No. of
farms
acres
Year
1947...
1948...
1949...
1950...
1951...
1952...
1953...
1954...
1955...
1956...
Average
24
25
21
23
25
27
20
24
24
20
23
366
406
324
360
364
418
284
306
276
254
336
Apples
Boxes
/acre
Cost
/box
No. of
acres
328
358
360
425
323
424
254
399
343
268
348
$1.54
1.39
1.24
1.18
1.40
1.15
1.84
1.35
1.60
1.82
$1.45
256
283
228
236
261
306
182
191
188
163
229
Winter pears
Cost
Boxes
/box
/acre
406
363
388
556
205
408
453
464
331
518
409
Bar tlett pears
No. of Boxes Cost
/acre
/box
acres
$1.14
1.20
1.10
.82
1.92
1.10
1.12
1.07
1.36
.97
$1.18
263
258
363
342
205
356
290
312
312
299
300
107
126
119
141
159
187
124
150
134
116
136
$1.64
1.64
1.24
1.24
1.88
1.32
1.71
1.49
1.60
1.58
$i.s&
* Apples and winter pears are packed boxes; cannery pears are standard lug boxes.
Effect of Size of Business on Costs
Size of the orchard enterprise had only very slight influence on the cost of production
during the 10-year period studied (table 13).
Table 13. SIZE OF BUSINESS: Ten-Year Results on the Cost Farms
(Does not include costs of storage, boxes, packing, and shipping)
Item*
Costt
Production t
Yield
Total
Acres /acre
Vield
Per box
Range per box
4,259
2,258
1.373
7,890
616
$ 1.52
1.33
1.85
$ 1.51
$ . 72
.48
.95
$ .48
to $
to
to
to$
8.96
4.18
5.72
8.96
Total
Small farms
Apples
Winter pears ..
Bartlett pears .
Total
Cost per acre
6.8
3.5
2.5
12.8
412
485
297
410
2,802
1,698
742
5,242
Medium farms
Apples
Winter pears • •
Bartlett pears •
Total
Cost per acre
13.3
8.5
5.8
27.6
374
476
340
398
4,974
4,046
1r972
10,992
$
7,113
4,491
2.859
$ 14,463
$
524
$ 1.43
1.11
1.45
$ 1.32
$ .71
.47
. 88
$ .47
to$
to
to
to$
9.06
4.26
5.51
9.06
Large farms
Apples
Winter pears- • •
Bartlett pears .
Total
Cost per acre
22.2
15.9
8.6
46.7
320
358
272
324
7,104
5,692
2.339
15,135
$ 10,372
7,530
3.649
$ 21,551
$
461
$ 1.46
1.23
1.56
$ 1.42
$ .75
.65
.56
$ .56
to $
to
to
to$
5.67
4.44
4.59
5.67
$
$
$
* Small farms had less than 20 acres of orchard; medium farms had from 20 to 39 acres; and
large farms had 40 acres or more,
t Apples and winter pears are packed boxes; cannery pears are standard lug boxes.
10
The small farms (12.8 acres of apples and pears per farm) generally had the highest yields
per acre. Good yields usually reduce the cost per box. Individual growers should note the wide
range in costs per box and strive to reduce their own costs.
Purpose and Nature of the Study
The purpose of this study was to obtain information from growers that would provide basic
facts on yields and costs of production. This information, when carefully adjusted to reflect
changes occurring in yields and in the price level of farm production cost, provides a basis
whereby cost of production can be readily estimated for any given year if no changes have
occurred in production techniques.
Cost of production reported herein is average-acre cost for all plantings in the study. Thus,
man-hours-per-acre (see tables 2,5, and 6) is a figure applicable to the entire acreage of a
crop within an area, such as a county. It indicates the average amount of labor that may be
required per acre for all the acreage of that crop in the area, even though each acre may not
have been covered by each operation. The same holds true of the other items of cost.
Acknowledgments
The fine cooperation received from the growers, who kept detailed daily records to provide
data for this report, is gratefully acknowledged. Special mention is made of the financial assistance contributed by the Hood River Traffic Association; also, the continuing interest and support
of the Hood River Apple Growers Association. Without the active participation of these groups,
the study would have been impossible.
Particular mention is made of Dr. G. W. Kuhlman, now deceased, who was instrumental
in initiating this cooperative work. The present circular is essentially a revision of his earlier
reports, bringing them up to date.