THE APPLE INDUSTRY IN FREDERICK COUNTY, VA. 25 



take with respect to purchasing barrels. In anticipation of a normal 

 crop some growers in the fall of 1920 laid in a supply of barrels for 

 the next season's crop. The crop the following year was practically 

 wiped out by late spring freezes, making it necessary to hold the 

 barrels in storage until the next season. 



The annual preharvest cash costs for the five years were $1,927 

 per orchard, or approximately $35 per acre. Of this amount slightly 

 less than one-half, or $952, was paid for regular hired labor. These 

 preharvest cash costs amounted to an average of $152 per month 

 for the entire year, but the outlay was heavy during some months 

 and light during others. Inasmuch as there was little or no income 

 excepting from the apple crop it was necessary to carry considerable 

 cash in a checking account at the bank or borrow the money as needed. 



The annual cost of commercial fertilizer was $125 per farm, or 

 5 cents per barrel of barreled apples. The spray material used cost 

 $163 per farm, or 7 cents per barrel of apples. Grain purchased for 

 feed, horseshoeing, and veterinary services for horses cost $220 per 

 farm, or 10 cents per barrel of barreled apples. 



The cash outlay for repairs on machinery, buildings, and fences 

 amounted to $141 per farm, or 6 cents per barrel of barreled apples. 

 Tree resets, considered as an upkeep for the orchard, was $16 per 

 farm, or 1 cent per barrel. The cost of taxes and insurance was 

 $128 per farm, or 6 cents per barrel of barreled apples. Miscellaneous 

 costs, such as automobile for farm use, gasoline and oil, freight , 

 telephone and telegraph service, road toll, and unclassified items, 

 amounted to $182 per farm, or 8 cents per barrel of barreled apples. 

 The cash charge against hauling apples of $161 per farm, or 7 cents 

 per barrel of apples was an outlay for contract work in those instances 

 where the growers lacked equipment necessary to move apples from 

 the orchard to storage or siding. Many growers hauled their own 

 apples with teams, using wagons with specially constructed racks. 

 Several growers now own motor trucks. 



The noncash costs are designated as "depreciation for reserves ,T 

 and "deductions from profits." The amount charged annually as 

 depreciation is not a direct cash expense for the particular year, but 

 it must be met at some future time by the purchase of new machines 

 and new buildings. The annual reserve allowed for depreciation of 

 buildings and fences was $117 per orchard farm, or 5 cents per barrel 

 of apples, and reserves for depreciation of machinery amounted to 

 $209 per farm, or 9 cents per barrel. Those costs that are here 

 termed deductions from profits consist of interest upon the valua- 

 tion of farm, equipment and supplies, and the wage value of the 

 work done by the farmer and unpaid members of his family. The 

 deductions from profits on the average were: For interest on capital, 

 $1,789 per farm, or 77 cents per barrel; for operator's labor, $851 

 per farm, or 37 cents per barrel, and for family labor $69 per farm, 

 or 3 cents per barrel. 



Variations in costs from year to year (1916 to 1920), as well as 

 for the average of the five years, are given in Table 23. 



VARIATION IN APPLE-PRODUCTION COSTS 



Operating expenses of the orchards in this study showed great 

 variation during the period 1916-1920. (Fig. 7.) Causes of varia- 

 tions in operating costs are partly under the control of the operator, 



