COST OF PRODUCING APPLES IN YAKIMA VALLEY. 16: 
those under clean-cultural and $0.7939 per box for those under the 
mulch-crop system. Thus, in the case of these ranches, there appears 
to be little difference in the cost per box under the different systems. 
This is attributable to the yield being 54 boxes per acre higher in 
the case of the 75 orchards under the clean-cultural system than in 
the case of the 45 under the mulch-crop system. The net labor cost 
for the orchards studied under the clean-cultural system is $0.0434 
more per box than those under the mulch-crop system. This differ- 
ence is due in part to credit received from hay on orchards under 
mulch-crop management, and in part to the smaller cost of tillage 
in ‘the mulched orchards. The material and fixed cost is more per 
box in the case of the mulch-crop orchards, as might be expected . 
from the lower yield. 
Table XLIX is a summary of all costs considered in the cost of 
producing apples on 120 farms in the Yakima Valley. For the 64 
records in the North Yakima district there was a total net cost of 
$0.8434 per box, while for the 56 records in Zillah it was $0.7425 per 
box. The fixed cost for the North Yakima district was $156.95 
per acre, or $0.3397 per box, or 40.28 per cent of the total of all net 
costs, while for Zillah the total fixed cost was $64.35 per acre, or 
$0.1617 per box, or 21.78 per cent of the total net cost. Thus the 
item of fixed costs is practicaily twice as great on the farms studied 
in the North Yakima region as on those about Zillah. This higher 
total net cost in the North Yakima district is due directly to the 
relatively higher land valuation. If interest on investment is not 
taken into account there is found to be an average annual net cost 
per acre of $259.31, or $0.6003 per box, for the 120 farms studied in 
the valley. In the case of North Yakima the net cost, minus interest, 
is $0.5782 per box, while in Zillah it is $0.6292 per box. In consider- 
ing the correct total cost of production this interest should not be 
deducted, but ineluded, as in the first part of the discussion. Itis a 
legitimate charge necessary to present real cost. Often, however, 
the interest charge is not taken into consideration in presenting the 
cost of production, though it is one of the greatest factors bearing 
upon success or failure in the fruit industry. Counting interest on 
investment, the average annual net cost of production on these 120 
farms representative of the Yakima Valley is $345.68 per acre, or 
$0.8002 per box. In Table L this total cost is subdivided to show 
the cost of the apples on the tree and the handling cost. 
