June, 1940] Budget Analysis of Orchards 



13 



10 



15 20 



45 



50 



55 60 



2S 30 35 40 



Age of Tp?ee5 



Figure 9. — Yields Normally Expected for Each of the Three 

 Methods of Planting 1000 Trees — Permanents, Permanents and 

 Semi-Permanents, and Permanents, Semi-Permanents and Fillers. 



These curves are based on definite assumptions which should be 

 kept in mind at all times. In addition to the quantity estimates of in- 

 puts and outputs, a rate of pay of 40 cents per hour, a price of 60 cents 

 per box of apples, and a land rental are definitely assumed. An individ- 

 ual operator can substitute a different value. Since there is no inten- 

 tion here to determine social costs but rather to make rough comparisons 

 between several methods of management, moderate changes in rates do 

 not affect the relative comparisons materially. 



Influence of assumed varying land rentals 



To the individual orchardist, the investment in land for the develop- 

 ment of an orchard represents a cost item. Assuming standard yields 

 on lands representing a cash purchase investment of $20, $40, $80, and 

 $200 per acre, the relative influence of these land purchase values on the 

 economy of the orchard can be traced. Land rental from the social point 

 of view is a residue or that part of the income implicated to land, and 

 naturally the income implicated as rent of land under conditions of 

 similar yields and costs would be the same. But in these examples, it 

 is assumed that due to associated or alternative use factors, land of equiv- 

 alent ratings as apple sites has varying purchase price values. 



An acre of land with 27 permanent trees would produce, assuming the 

 standard yield curve, 6768 boxes of apples in the 60 year period. 



Assuming five per cent as interest and two per cent as tax the yearly 

 estimated rental per acre could be estimated at $1.40, $2.80, $5.60, and 

 $14 on land purchased at $20, $40, $80, and $200 respectively. Over the 

 60 year period this would amount to $84, $168, $336, and $840 per acre 

 respectively. 



If only permanent trees, 27 to the acre, are grown, without consider- 

 ing the waiting, this would amount to 1.2 cents, 2.5 cents, 5.0 cents and 



