1
				2000 APPLE PRODUCTION BUDGET
				Land Preparation (Year 0) 1
				1 Acre
	ITEM				EXPLANATION		PRICE PER				YOUR
							UNIT				BUDGET
VARIABLE  COSTS
	Fertilizer 2
		N			20	lb	$0.23	/lb	$5
		P2O5			30	lb	0.28	/lb	8
		K2O			30	lb	0.13	/lb	4
		Lime			1000	lb	14	/ton	7
	Pesticides 3								15
	Cover Crop (Fescue)				12	pounds	1.50	/lb	18
	Fuel, Oil, Grease								18
	Repairs								15
	Miscellaneous 4								12
	Hired Labor 5				30	hours	7.50	/hr	225
	Int. on Oper. Cap. 6				6	mo.	9.0%		15
TOTAL VARIABLE COSTS						-Per Acre			342
FIXED COSTS
	Operator Labor Charge 5				6	hours	7.50	/hr	45
	Mach. And Equip. Charge								38
	Land Charge				Rent				85
	Facilities and Equipment 7				$  30,000		15%		225
	Management Charge								130
TOTAL FIXED COSTS									523
TOTAL COSTS						-Per Acre			865
1	Land preparation is the first step in establishing an orchard.  No crop or revenue is realized
		until the 4th year or later.
2	Consult OSU Bulletin 458 "Fertilizing Fruit Crops" for specific recommendations
3	Consult OSU Bulletin 506A2 "Commercial Tree Fruit Spray Guide" for specific recommendations
4	Includes soil tests, small tools, utilities, etc…
5	Hired and seasonal labor is considered a variable costs, salaried and operator/unpaid
		family labor is considered a fixed cost.
6	Interest on all variable costs for 6 months at 9% interest rate
7	Facilities and equipment valued at $30,000 expensed at 15% annually for 20 acres.
		Example: $30,000 x 15 / 20 acres = $225
		Includes depreciation, interest, insurance, and repairs.