70 BULLETIN 614, U. S. DEPARTMENT OF AGRICULTURE. 



The made-up box cost is 31.92 per cent of the material and fixed 

 costs. 



The total of all material and fixed costs is $82.94 per acre, or $0.1920 

 per box. For the 75 clean-cultural records it is $86.50 per acre, or 

 $0.1914 per box, while for the mulch-crop it is $76.94 per acre, or 

 $0.1933 per box. It is thus seen that the material cost per box 

 varies but $0.0019 between the clean-cultural and mulch-crop systems 

 of management. 



FIXED COSTS. 



The largest single item of fixed costs is the interest on apple-orchard 

 investment. This charge is often a determining factor in the apple 

 business. In the case of Zillah this cost amounts to $45.09 per acre, 

 or $0.1133 per box, for the ranches studied, while in the case of North 

 Yakima it amounts to $122.50 per acre, or $0.2652 per box. This 

 difference is due to the difference in the bearing apple land valuation, 

 which in Zillah is $563.57 per acre, while in North Yakima it is 

 $1,513.25. For Zillah this interest charge makes 15.26 per cent of the 

 total annual net cost of production, while in North Yakima it makes 

 31.44 per cent. Tables XL VI and XLVII show the difference in this 

 cost between the mulch-crop and clean-cultural orchards. In Table 

 XL VIII, where North Yakima and Zillah records are shown combined, 

 there is found to be an acre cost of $86.37 or practically $0.20 per box 

 for this interest charge, thus making up 24.98 per cent of the total 

 annual net cost of production. Interest in this region is figured at 

 the rate of 8 per cent. 



Several growers have buildings devoted especially to apples, the 

 charge for which appears in the "apple-building charge." Usually 

 these are inexpensive packing houses or sheds. The investment varies 

 greatly, and in many cases where expensive packing houses or barns are 

 on the place they are used for other purposes when not needed in 

 handling the apple crop. It is therefore difficult to arrive at a proper 

 investment charge for the apple orchard for such buildings. Such 

 data and annual costs for this item as were secured were found to 

 amount to practically $0.01 per box per year. In order that this 

 figure might be comparable, the arbitrary figure of $0.01 per box for 

 apple-building charge is used for records for the entire valley. This 

 charge amounts to $4.32 per acre. . 



In arriving at the equipment charge, the average investment in 

 equipment is determined and the amount chargeable to the apple 

 orchard is arrived at by finding the percentage value that the apple 

 orchard represents of the total land and improvement investment. 

 This percentage value is figured on the equipment. That is, if the 

 apple orchard represents 50 per cent of the land and improvement 

 investment, 50 per cent of the equipment is charged to the apple 

 orchard. 



