638 FUNDAMENTALS OF FRUIT PRODUCTION 



to undertake the commercial production of any fruit where an industry in 

 that particular fruit is already established. 



One great advantage in producing fruit of a kind that is well and 

 favorably known and in a section where it is extensively grown is that 

 the marketing problem usually presents fewer difficulties. The reputa- 

 tion attracts buyers and the fact that growers have been established there 

 often means that efficient selling organizations have been formed. How- 

 ever, such marketing advantages are often over-emphasized. In years 

 of heavy production, the apple grower in western New York may wish 

 his orchard were in Indiana or Nebraska. Moreover, land prices are 

 likely to be high in sections with established reputations; this means a 

 permanently large overhead charge in the cost of production. If fruit 

 is to be grown under these conditions, the choice of kinds and varieties 

 and the methods of culture must be such as will yield large returns. 

 The usual advantages of production where little fruit is raised are cheap 

 land and good local markets. However, isolation may mean difficulty 

 in getting in contact with buyers, trouble in securing supplies and no 

 possibility of cooperative effort. Probably much would depend on 

 the scale of operations contemplated. The small grower can often 

 produce to better advantage in the less developed sections, though 

 conditions favorable to developing a large enterprise are more likely 

 to be found where an industry of some size is already established. 



Land Values. — Among the important factors determining the desir- 

 ability of a piece of land for fruit growing are : land values, the availability 

 of transportation and storage facilities, of fruit products establishments, 

 of labor supply, the social conditions and the educational advantages. 

 Locations only a few miles apart may vary greatly in respect to one or all 

 of these factors. 



Perhaps the price paid for land or its valuation has nothing to do 

 with the grade or quantity of fruit that can be produced on a given area 

 and the question of conditions favorable for production can possibly be 

 considered entirely aside from it. Nevertheless it should be realized 

 that successful orcharding is a question not only of production, but 

 even more of economical production. This means that there must be a 

 reasonably large margin between production costs and selling prices. 

 Both production costs and selling prices for fruit fluctuate from year to 

 year and the difference between them will likewise vary, but interest on 

 investment constitutes a fixed and important part of the overhead charges 

 figured into the cost of production. This charge must be discounted 

 every year, crop or no crop. For instance, if the orchard at bearing age 

 represents an investment of $300 per acre and it yields an average crop 

 of 300 bushels per acre the interest charge against each bushel is about 

 6 cents; if, however, the orchard represents an investment of $1,000 per 

 acre, a crop of the same size would represent an interest charge of 20 



