30 



BULLETIN 1455, U. S. DEPARTMENT OF AGRICULTURE 



Table 24. — Size of orchard, yield per acre, and cost of production on 48 orchard 

 farms; average for 1916-1920 



Yield 

 (per acre) 



Orchards 



Size of 

 orchard 



Yield 



per 



acre : 



Net cost 



Per 



acre 



Per 



barrel 



Acre* 



50 or less of bearing trees . 



Over 50 of bearing trees- . 



Barrels Xumber 



f40orless 17 



[Over 40 13 



f40orless 7 



I Over 40 11 



Acres 



30 



>2 



Barrels 



, 31 



57 



35 



53 



Dollars Dollars 



109. 00 3. 5S 



163. 35 2. 81 



94. 66 2. 72 



135. 80 2. 54 



i Includes barreled apples only, 

 total cost of operating the farms. 



Culls were considered a by-product and their value deducted from the 



RELATION OF VOLUME OF PRODUCTION TO FIXED AND VARIABLE COSTS 



In the operation of an orchard farm there are certain expenses 

 which are variable and certain others which are fixed in amount in 

 any particular year. Variable costs are hired labor, fertilizer, spray- 

 ing, and harvesting expenses. Certain other annual expenses, com- 

 mon to every orchard, are more or less fixed in amount. They may 

 be denned as costs necessary to keep the business going regardless of 

 the quantity of production. Included in fixed costs are interest, 

 operator's labor, cost of keeping work stock, repair of fences, build- 

 ings, and machinery: depreciation of fences, buildings, and equip- 

 ment; taxes, fire insurance, and other miscellaneous expenses. 



Fixed costs depend somewhat upon the size of the orchard inas- 

 much as within certain limits the size of the business influences the 

 quantity of equipment and improvements to be kept in condition. 

 Such costs as taxes and insurance would also change with the size of 

 the orchards. It is important that the grower carefully consider his 

 fixed costs, for at least a part of these must be taken care of each year, 

 whether production or prices are high or low. But the greater the 

 volume of business the less significant is the fixed cost per unit of 

 product. (See Table 25.) 



On orchard farms most fixed charges are incurred irrespective of 

 the volume of production, whereas variable costs for such operations 

 as picking and packing apples and for barrels bear a definite relation 

 to the volume of production. As a whole, variable costs per acre 

 on these farms increased with volume of production, whereas variable 

 costs per barrel were about the same for the orchards of different 

 sizes and yields. 



Table 25. — Effect of size of orchard and yield of apples on fixed and variable costs 

 f t8 orchard farms; average for 1916-1920 



Yield per 

 acre 



Fixed 

 cost 

 per 

 acre 



Variable costs per 

 acre 



Pre- 

 harvest 



Harvest 



Fixed Variable 

 cost cost 



per per 



barrel ! barrel 



Acres 

 50 or less of bearing trees 



Over o0 of bearing trees. 



Barrels 



Dollars 



Dollars 



Dollars 



Dollars 



Dollars 



j 40 or less 



\Over40 



61.62 



17.23 



30.15 



2.00 



1. 68 



79. 77 



28. 94 



54.64 



1.35 



1.46 



/40 or less 



40. 56 



17. OS 



37.02 



1.17 j 



1. 55 



\Over40 



55.67 



20.37 



59.76 



1.04 



1.50 



