Locality and Site for the Commercial Orchard 127 



cent payment should be considered as a safe margin in 

 buying a full bearing orchard. For a non-bearing orchard, 

 the buyer must carefully figure the outlay required to 

 bring the trees to full bearing and also his living expenses 

 for the meantime. Inter-crops may help to defray some 

 of the running expenses, although there is a tendency to 

 over-estimate income from this source. 



This leads to a discussion of the amount of money which 

 the investor may expect to borrow when apple land is 

 given for security. Attractive 'terms often may be se- 

 cured at the time of purchase, particularly when the 

 owner is anxious to sell or is getting a good price for his 

 land. In such cases the purchaser may not require addi- 

 tional capital beyond his first payment. However, if he 

 is obliged to seek credit from a banker, he may be sur- 

 prised to learn that apple trees are not always considered 

 a permanent improvement and in such cases appraisals for 

 loans are based on the value of the land for general 

 crops. Such has been the decision rendered by the Fed- 

 eral Loan Board in establishing a basis for loans on fruit 

 lands throughout the country. Individuals may of course 

 show a different attitude, considering that although the 

 fruit-trees may not be considered permanent improvement, 

 the land may have a greater value on account of its 

 ability to produce exceptionally fine fruit. Credit will 

 always retain much of the personal element and will 

 vary with the prosperity of the apple industry. Further- 

 more, cooperation among growers and the influences tend- 

 ing to stabilize the industry may be expected to reflect 

 materially on credit and current interest rates. 



For the farmer with less than several thousand dol- 

 lars' capital or who does not wish to devote himself ex- 



