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  M176 Cost of

Producing Tree ruit

Farm Management Library

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MAIN IDEA

• What factors affect the cost of producing

apples, peaches and pears?

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!ome fruit numbers

• Over a half million acres of U.S. land are

planted to trees that produce apples,

peaches or pears.• 65 percent – apples

• 2 percent – peaches

• !! percent "" pears

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"#ere a$$%es are gro&n

• #ommercial $earingacreage in %5 states

• &op state' Washington hasa$out () of total U.S.apple acreage

•Other leading states' *e+or-, ichigan, #alifornia,/enns0lvania and 1irginia

USDA photo by Doug Wilson.

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"#ere $eac#es are gro&n

• #ommercial acreage in 2 states

• 65) of peach orchard acreage is in #alifornia,South #arolina and 3eorgia.

• Other leading states'*e+ 4erse0, &eas,ichigan and /enns0lvania.

• &+o -inds of peaches• reestone

• #lingstone 7a$out 22) of total8are all gro+n in #alifornia

USDA photo by unknown photographer.

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"#ere $ears are gro&n

• #ommercial pear acreagein states.

• ( percent in Washington

state• percent on the /acific

#oast in Washington,Oregon and #alifornia

• Other si states'#olorado, #onnecticut,ichigan, *e+ or-,/enns0lvania and Utah

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Deciding to start an orc#ard'

• 9ong"term investment

• :t ta-es time to get started

• /rices and fruit production levels can var0

from 0ear to 0ear.

•  ;nal0<e the profit potential over !( 0ears

or more.

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Mar(eting fruit

• ruit can $e sold fresh or for processing.

• 1isit local orchards.

• ind out processor re=uirements.

• Will 0ou sell +holesale or retail?

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"#o%esa%e orc#ards )

• ruit is sold to middlemen,

or +holesale $u0ers, +ho

in turn sell to retailers or to

consumers.

• 3ro+er does not deal +ith

the consumer.

• &0picall0 large orchards+ith their o+n pac-ing

lines and storage facilities

USDA photo by Ken Hammond.

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*etai% orc#ards )

• a0 $e smaller operations

• Sales to local or personal

mar-ets• Sales through roadside

stands and farmers> mar-ets

• Sales directl0 to consumers

• ou"pic- operationsUSDA photo by Bill Tarpenning.

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T#e cost of %abor )

• /ermanent, s-illed la$or needed for spra0ing,

pruning and general maintenance

• Seasonal la$or to harvest and pac- fruit• &he orchard must $e $ig enough to ustif0

e=uipment investments.

• !( acres considered a minimum si<e for a

commercial apple"gro+ing enterprise handled

mostl0 $0 one person.

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"#at about management'

• S-illed management is essential for success.• 3et eperience $0 +or-ing at another orchard.• Or, hire a competent manager or consultant.• S-ills in $usiness management, supervision,

fruit production and mar-eting• Selecting and gro+ing the $est varieties for 0our

area and mar-et• /roper fertili<ing, pruning, training, thinning, pest

control, harvesting, handling, storage andmar-eting of 0our fruit

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A substantia% ca$ita%

in+estment

• Start"up capital must cover epenses from

planting until harvests can cover costs.

•  ;s- @tension specialists for costestimates.

• &rees +ill $egin producing in a$out

0ears, $ut epenses must $e paid untilthat time.

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Estimate your o$erating

costs

• 9arger, producing trees re=uire more

pesticides, pruning and la$or 

• Airing hone0$ee hives• 9a$or to thin ecess fruit set, appl0

pesticides and harvest crop

• :ncome +ill var0 +ith 0ield and fruit prices

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T&o (inds of costs

• 1aria$le – direct epenses to gro+ a crop

• @amples' seed, pesticides, tillage

• Birectl0 related to num$er of acres

• ied overhead costs

• @amples' cost of land, e=uipment

depreciation, taes, insurance.• Celated to time, not output

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 This presentation was produced and is copyrighted by Stewart- Peterson®, Inc. 2005. Permission is granted

for use by actie !g"d#et.com® subscribers. !$$ other use is prohibited.

ST"%!&T P"T"&S'# and !(")#"T *'+ are registered trademars of Stewart Peterson Inc

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