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Table 7: Costs and Returns for Fresh Market Apples, Per Acre

Land Preparation Year, Conventional Production Practices,
Northeastern United States, 1996

ITEM UNIT PRICE QUANTITY TOTAL
         
Receipts        
Apples pound   0 $ -
         
Variab le Costs        
Custom        
Calcium Application ton $ 27.65 2 $ 55.30
High Tensile Deer Fencinga linear foot $ 3.75 209 $ 783.75
Cover Crop        
Fescue Seed pound $ 1.25 30 $ 37.50
Labor        
Operator hour $ 14.48 1.39 $ 20.13
Regular Hired hour $ 10.13 26 $ 263.38
Diesel Fuel        
Tractors gallon $ 0.969 7.59 $ 7.35
Repair & Maintenance        
Tractors acre $ 3.36 1 $ 3.36
Implements acre $ 6.33 1 $ 6.33
Sub-Total       $ 1,177.10
Interest on Operating Capitalb acre 10% 1 $ 58.86
Total Variable Costs acre   1 $ 1,235.9 6
Returns Above Variable Costs acre   1 $ (1,235.96)
Fixed Costs        
Tractors acre $ 11.36 1 $ 11.36
Implements acre $ 11.80 1 $ 11.80
Land Charge acre $ 100.00 1 $ 100.00
Total Fixed Costs acre   1 $ 123.16
Total Fixed & Variable Costs acre   1 $ 1,359.12
Management Feesb acre 7% 1 $ 88.14
Total Cost acre   1 $ 1,447.25
Net Returns acre   1 $ (1,447.25)

a Based on 16 acre orchard. Actual cost will depend on size and shape of parcel.
b See text for calculation assumptions.

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