Good Fruit Grower

December 2012

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Orchard Economics growing Reds Cost of A Growers need to cover both their cash and fixed costs, so they can afford to update equipment. by Geraldine Warner new economic study from Washington State University estimates the variable costs of pro- ducing Red Delicious in a mature orchard at $6,436 per acre and fixed costs at another $2,804. On top of that, the grower would pay $12,862 in packing charges, assuming a net yield of 59.50 bins per acre (culls removed) and a packout of 85 percent. (Continued on page 46) TABLE 1 Red Delicious costs Typical variable per-acre costs for a mature Red Delicious block producing 59.5 bins per acre. Orchard activities Pruning and training Green fruit thinning Irrigation labor Chemicals Fertilizer Frost protection labor Beehives General labor Irrigation/electricity Harvest Picking labor Checkers, tractor drivers Hauling Maintenance and repairs Machinery repair Fuel and lube Wind machine and alarm system repair Mainline, pump, and pond maintenance Warehouse packing charges Other Overhead (5% of variable costs) Interest (5% of variable costs) Total variable costs $420 $540 $130 $1,082 $101 $5 $45 $300 $187 $1,120 $210 $350 $125 $180 $48 $9 $12,862 $886 $697 $19,297 ASSUMPTIONS 25-acre block in a 300-acre diversified orchard. Hand labor rate: $12 an hour including taxes and benefits Tractor/machinery labor rate: $13, including taxes and benefits. Wages: pickers $16/bin; checkers and tractor drivers $3/bin; hauling $5/bin. Interest expense for 9 months of the year. 85 percent packout. SOURCE: Karina Gallardo, WSU www.goodfruit.com Serving Agricultu re Since 1933 Apple, Pear, Cherry, Plum, Apricot 301 N. 1st Avenue Yakima, WA 98902 (t) 509.452.8063 1.800.322.8852 (f) 509.453.6838 www.firmanpollen.com GOOD FRUIT GROWER DECEMBER 2012 45 Quality Firman Pollen Improves: -Fruit Set -Bee Efficiency -Pollination Timing Quality Pollination Improves: -Yield Consistency -Fruit Quality -Fruit Storability Trust Quality Firman Pollen -Viability and Virus Tested -Compatibility Matched -Leaders in Application Technology Exclusive distributor of Scumby Puffers® Area Representatives: Washington: Columbia Basin and Yakima Valley Randy Bunce 509.452.8063 randy@firmanpollen.com California Linden John DeMartini 209.484.8502 Tulare & Kern Counties Bob Cademartori 209.601.0754 Tom, Kyle, & Linda Batch 509.687.9670 Wenatchee/Okanogan area Tom, Kyle, & Linda Batch Grandview: 509.882.1225 Zillah: 509.829.6922 Bleyhl Farm Service Serving Agriculture Since 1933

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