34 



BULLETIlSr 446, U. S. DEPARTMENT OP AGEICULTURE. 



The charge for the use of the packing house is computed by con- 

 sidering the interest at 8 per cent, depreciation at 3 per cent, taxes 

 1 per cent, and repairs 3 per cent, which amounts to 15 per cent on the 

 total packing-house investment. 



No account has been taken of the depreciation of the orchards 

 themselves, as the average length of life of the commercial varieties 

 under the methods of management in vogue here is not known. 

 However, in arriving at the true cost of apple production such a 

 charge should be considered. 



• Table XXVIII. — Fixed costs, S7 orchards. 



Item. 



Cost per 

 acre. 



Cost per 

 box. 



Taxes 



$13.08 



1.69 



.96 



154.00 



10.42 



6.78 



$0. 0221 





.0028 





.0016 





.2597 





.0176 



Packing house building charge . . - . . 



.0114 









Total 



186. 93 



.3152 







The various annual costs of producing apples in the bearing 

 orchards studied in Wenatchee Valley, including delivery at shipping 

 point, are summarized in Table XXIX. The fixed, or overhead, cost 

 is 40 per cent, while the labor and material costs are respectively 38 

 and 22 per cent of the total cost of production. 



Table XXIX. — Summary of labor, cash, and fixed costs per acre (clean-cultivated 



orchards). 



Items of cost. 



Total cost. 



Per cent 



of total 



cost. 



Per acre. 



Per box. 



Per tree. 





$179.09 

 103. 71 

 186.93 



$0.3020 

 .1749 

 .3152 



$2. 211 

 1.280 

 2. 308 



38.13 



Material . 



22.08 





39.79 







Total 



469. 73 



.7921 



5.799 



100.00 



The largest single charge that enters into these totals is that of 

 interest on investment, which is 33 per cent of the total. This leaves 

 about 67 per cent for all other costs, so that in considering only those 

 expenses which the average rancher usually would calculate, the pro- 

 duction of a box of apples is shown to cost on the farms studied in 

 the valley about 50 cents. 



Considering costs in that way, however, gives a misleading figure, 

 for the calculation leaves out not only several items, but the largest 



