WHAT IS AN ORCHARD WORTH? 



The drastic changes in the fruit industry over the past 15 years and the takinR 

 of land for public use have made the pr<->^lem of orchard valuation of interest: to 

 orchard operators. The statement has been made that orchard owners have no basis 

 of determining value. This statement in itself is suspect since all property has 

 some value to someone although value may be lower or higher depending on circum- 

 stances. 



There are two general problems and they are: 



(1) The problem of determining value to set a sales price. 



(2) The problem of determining value under condemnation or land taking 

 for public use. 



The problem of determining a value for the purpose of a sales price is usually 

 a matter for an appraisal either by the owner, his representative or by a trained 

 appraiser. An appraisal is always an opinion. An appraisal by a trained and 

 experienced appraiser is usually a composite based on observation of the property 

 in its present condition and experience of the appraiser. It frequently is a 

 COTiposite of many opinions on parts of the farm and its setting. 



The value of an orchard is determined by the production after development and 

 the cost of maintaining that production. Any orchard will be in one of three 

 conditions: 



(1) A developing orchard - on the way up in production. 



(2) A producing orchard - in full production. 



(3) A declining orchard - going down in production. 



When reaching a value for a developing orchard it is necessary to determine 

 whether development can continue until the orchard is a producing one. If this 

 seems likely then there are some requirements for a successful orchard: 



(1) The soil is important and it should be suitable for the varieties 

 being grown as well as the type of fruit - apple - peach - pear. 



(2) The orchard should be located in a fruit area where there are other 

 successful orchards, 



(3) Markets should be established, 



(4) Some plan for replacement should be indicated, 



(5) Hazards of climate, drainage and requirements for irrigation should 

 be minimum. 



(6) Wild '"rees, abandoned orchards and other pest and disease sources 

 should be few and control of orchard damaging animals should be 

 established. 



(7) Spacing and planting distances and varieties should meet accepted 

 standards for the area. 



(8) Orchard layout should permit use of labor saving equipment in orchard 

 care, spraying and harvesting. 



(9) Tree growth should be vigorous and evidence of good care should be 

 present. 



