COST. OF PEODUCING APPLES IN HOOD RIVER VALLEY. 49 



which ofter determines the success or failure of a great many fruit 

 growers. It is an actual cash expense to the grower who has a 

 mortgage on his place. 



The equipment charge for these farms is $6.50 per acre annually. 

 It is made up of depreciation, upkeep, interest, and taxes on equip- 

 ment. Only the spray rig is charged entirely to the orchard, charges 

 for all other machinery being apportioned according to the relative 

 extent to which it is used for work on the bearing orchard and on 

 other crops. A 25 per cent annual charge is used for equipment other 

 than the spray rig, consisting of 11 per cent depreciation, 8 per cent 

 interest, 5 per cent upkeep, and 1 per cent taxes. The spray rig cost 

 also amounts to about 25 per cent, but is made up somewhat differ- 

 ently. The total annual equipment or machinery cost is $6.50 per 

 acre, or $0,029 per box. This is practically $0.03 per box. 



The building charge is the annual charge for apple buildings, such 

 as packing sheds or tents. This amounts to $3.27 per acre, or $0,014 

 per box. Many growers have very inexpensive packing sheds, but 

 there are a few who have a very large investment in such buildings. 

 In such instances the cost is very high. Only average conditions are 

 considered here, and expensive packing sheds are not the rule. 



Taxes are high in Hood River Valley, as in many other Northwest 

 sections. The average annual tax per acre in the case of the 54 apple 

 orchards is $8.19, or $0,036 per box. The orchard's share of fire in- 

 surance is $0.33 per acre, or $0.0015 per box. 



Water rent amounts to $2.62 per acre for those who irrigate. This 

 amounts to $1.56 for all records, or $0,007 per box. 



Interest on investment in apple orchard, the largest item entering 

 into the cost of production, makes up 55.85 per cent of the material 

 and fixed costs and 34.9 per cent of the total annual cost of produc- 

 tion on the farms studied. This cost is figured on an average invest- 

 ment of $990.74 per acre at 8 per cent and an average yield of 222 

 boxes per acre. The interest charge per acre is $79.26 and the charge 

 per box is $0,357. This interest cost has been fully discussed under 

 investment. 



