13 



In other words, when raw land, capable of returning $450, is worth 

 $900 per acre, and when returning $225 is worth $200, then land that is 

 capable of returning $150 per acre is worth nothing for the purpose 

 of growing oranges under the conditions named. 



If 225 boxes per acre at $1.50 per box are assumed, twelve acres 

 of trees would be required. Assuming the purchase of a fifteen acre 

 tract, raw land would, in accordance with the assumptions already 

 made, be worth $435 per acre. 



In like manner, accepting these assumptions, bearing orchards of the 

 sizes named, returning an annual gross income of $4000 each, would 

 be worth : 



VALUE PER ACRE OF BEARING ORCHARD 



10 acres $1,600 per acre 



15 acres 1,067 per acre 



20 acres 800 per acre 



28 acres 571 per acre 



Since this circular is being prepared for the prospective settler, it 

 is assumed that the tract to be purchased will constitute a home as well 

 as a place of business. The cost of a bungalow of the simplest type, 

 therefore, has been included under the head of buildings. Many of 

 the orange and lemon groves of California, however, are without 

 dwellings, being held by the owners as an investment. (See paragraph, 

 A Going Concern.} Even when the owners are not engaged in other 

 business, they often live in nearby towns or villages. Not infrequently 

 there is a dwelling for a foreman or other laborer. The tracts on 

 which owners of homes are located are apt to be twenty acres in 

 extent and yield a gross income of $4000 per year. 



Dry Farming. It has been shown that two hundred acres of land 

 sown annually to barley might bring a gross income of $4000 per year. 

 In the area having an annual rainfall between ten and fifteen inches 

 this result could probably be obtained only by cropping every other 

 year and by the practices known as dry farming. In order, therefore, 

 to obtain an annual income of $4000 per year, four hundred acres of 

 land would be required, so that one-half might each year remain fallow. 

 Assuming $4000 is required for horses, machinery and other equip- 

 ment, there would be left $12,000 to invest in land possessing suitable 

 buildings, or at the rate of $30 per acre. If buildings are absent then 

 a sufficient sum must be deducted to pay for the buildings. If $4000 

 is required for buildings, then the land should be purchased at $20 

 per acre.* 



* For further discussion of land values see page 45. 



