COST OF PRODUCTION OP APPLES, PAYETTE VALLEY, IDAHO. 33 



4.43 per cent of the total material and fixed cost and 2.51 per cent of 

 the total annual net cost. 



The other item of material cost is the seed, which amounts to but 

 $0.07 annual charge per acre over all orchards and $0.12 per acre for 

 those under mulch-crop orchards. This charge is for alfalfa, blue- 

 grass, or clover seed, which is sown only occasionally. 



Under fixed costs are included such items as interest on apple 

 orchard, the apple-building charge, equipment (including spray-rig 

 hire), taxes, insurance,and water rent. The fixed costs amount to 

 $63.31 per acre annually, or $0.1879 per box. They make up 46.48 

 per cent of the material and fixed cost and 26.43 per cent of the total 

 annual net cost of production. 



The interest charge ($49.05 per acre, or $0.1456 per box) is larger 

 than all other items combined, being 20.48 per cent of the annual 

 net cost*of production. The equipment charge is figured at the rate 

 of 25 per cent annual charge on equipment investment. The greatest 

 item of equipment investment is the spray rig, which practically all 

 growers own and on which there is ordinarily a large depreciation. 

 The fact that the depreciation charge appears low is due to the fact 

 that all equipment is figured at present value, while under the dis- 

 cussion of spray rigs the depreciation and upkeep is figured on the 

 original investment. The annual equipment charge per acre is $5.40, 

 or $0.0160 per box, being 3.96 per cent of the total material and fixed 

 cost, or 2.25 per cent of the total annual net cost of production. 

 The spray rig makes up over 75 per cent of this annual equipment 

 charge. 



The material cost in the case of Payette is about the same per box 

 as found in other Northwest apple regions. However, in the case of 

 the fixed cost there is a much lower charge per acre and per box than 

 in most other Northwest regions, due to the fact that the average in- 

 vestment in land is much lower. The equipment charge in the Payette 

 region is also somewhat less than in more intensive and specialized 

 regions, for the farms are larger and the tools, with the exception of 

 the spray rig, are used for many other purposes than for orchard 

 operations. 



The total material and fixed cost, amounting to $0.4043 per box, of 

 which 53.52 per cent is for material and 46.48 per cent for fixed cost, 

 represents all costs other than labor. 



SUMMARY OF ALL COSTS CONSIDERED. 



When all items entering into the annual net cost of production of 

 apples on the 38 farms studied are considered, there is found to be a 

 cost of $0.7111 per box for all records, for clean-cultural orchards 

 $0.7036, and for mulch-crop orchards $0.7162. It is thus found that 



