12 



Under this estimate, raw land capable of being irrigated and 

 suitable for growing oranges, may be estimated to be worth $200 per 

 acre. It is not intended to say that such raw land is worth $200 

 per acre. What is intended is to point out that in finding the value 

 of raw land one should determine the cost of buildings, water rights, 

 and the expense of bringing the trees into bearing, and deduct these 

 items from the value of a bearing orchard. 



The influence of yield upon the value of land may be illustrated 

 with the orange crop. Suppose instead of a safe yield of 225 boxes 

 per acre, a yield of twice this amount, or 450 boxes, is estimated, which 

 is a yield not infrequently obtained under favorable conditions. At a 

 dollar a box the area required to return $4000 gross income would be 

 approximately nine acres. As there will be some waste land, let a 

 tract of ten acres be estimated. The cost per acre of water rights 

 and bringing orchard into bearing remaining the same, the following 

 table shows the result: 



TEN ACRE ORCHARD 



Buildings , $2,000.00 



Water rights ten acres at $150 1,500.00 



Bringing orchard into bearing ten acres at $350 3,500.00 



Value of raw land 9,000.00 



Total $16,000.00 



It will thus be seen that when the income per acre is doubled the 

 value of raw land rises from $200 to $900 per acre. The same result 

 would have been accomplished if instead of assuming a change of 

 yield from 225 to 450 boxes per acre, the price had risen from $1 to $2 

 per box. By way of emphasis the illustration may be pushed further : 

 Suppose instead of a yield of 225 boxes per acre only an average yield 

 of 150 boxes, worth $1 per box, was obtained. Then to secure a gross 

 return of $4000 would require nearly twenty-seven acres to allow 

 for waste land, assume twenty-eight acres. Estimated as before, the 

 following interesting result is obtained : 



TWENTY-EIGHT ACRE ORCHARD 



Buildings $2,000.00 



Water rights 28 acres at $150 4,200.00 



Bringing orchard into bearing 28 acres at $350 9,800.00 



Value of raw land Nothing 



Total $16,000.00 



