COST OF PRODUCING APPLES IN WESTERN COLORADO. 



11 



Even assuming, that the buyer of a ranch has paid down the entire 

 cost price and has his ranch clear, he is not yet safely established, for 

 he needs in addition a considerable working capital in order to buy the 

 necessary equipment and keep it in repair. This accounts for the 

 fact that in some cases where ranches were entirely free of debt 

 owners have been obliged, by reason of lack of working capital and a 

 series of unfavorable seasons, to mortgage their ranches and eventually 

 lose them. 



Table V shows the per cent of interest realized on investment per 

 box at various prices for fruit. Figured on a basis of average annual 

 yield per acre, the apple-land investment per box is $2.73 for Mesa, 

 $2.13 for Delta, and $1.62 for Montrose, or $2.30 per box for all 

 orchards. The annual cost of production per box minus the interest 

 charge on apple land for these counties respectively is $0,716, $0,624, 

 and $0,637, or for all counties it is practically $0.66 per box. It is 

 seen that with fruit at $0.50 a box the grower on the farms studied in 

 the Grand Valley loses 7.9 per cent on his investment, or for all counties 

 he loses 6.95 per cent. If fruit brings $0.90 a box, he makes 6.73 per 

 cent in the Grand Valley, or 10.44 per cent for all counties. When all 

 counties are considered he must get $0,844 per box in order to make 8 

 per cent interest on his investment. When all grades of box apples 

 are considered it is seldom of late years that a grower receives a price 

 of $1 per box f . o. b. on his apples, and the average is usually consid- 

 erably less. 



Table V. — Per cent of interest the average grower realizes on his investment in bearing 

 apple orchard {125 ranches, western Colorado). 



Price 

 per box, 

 f. o. b. 



Per cent of interest realized on 

 investment. 



Mesa. 



Delta. 



Mont- 

 rose. 



All 

 counties. 



$0.50 



.60 



.75 



.90 



1.00 



1.25 



- 7.92 



- 4.26 

 + 1.23 

 + 6.73 

 + 10.39 

 + 19.55 



- 5.83 



- 1.14 

 + 5.91 

 + 12.95 

 + 17.64 

 +29.38 



- 8.51 



- 2.33 

 + 6.93 

 + 16. 19 

 +22. 36 

 +37. 79 



- 6.95 



- 2.60 

 + 3.92 

 + 10. 44 



+ 14.78 

 +25.66 



LABOR. 



The growers of Grand Valley depend principally on day labor for help. 

 In Delta and Montrose Counties considerable month labor is hired. 

 The average price paid for month labor varies from $30 to $60 per 

 month, depending on the privileges the laborer receives. In all three 

 counties, up to 1915, the average day-labor rate for orchard work, 

 except pruning, was 25 cents per hour. Pruning was 35 cents per 

 hour. Work done by the farmer or any of his family is counted at 



