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				2000 APPLE PRODUCTION BUDGET
				Establishment (Year 1) 1
				1 Acre
	ITEM				EXPLANATION		PRICE PER				YOUR
							UNIT				BUDGET
VARIABLE  COSTS
	Apple Trees				300	trees	$6.00	/tree	$1,800
	Fertilizer 2
		N			20	lb	0.23	/lb	5
		P2O5			30	lb	0.28	/lb	8
		K2O			30	lb	0.13	/lb	4
	Pesticides 3								60
	Fuel, Oil, Grease								18
	Repairs								15
	Miscellaneous 4								15
	Hired Labor 5				30	hours	7.50	/hr	225
	Int. on Oper. Cap. 6				6	mo.	9.0%		16
TOTAL VARIABLE COSTS						-Per Acre			2166
FIXED COSTS
	Operator Labor Charge 5				10	hours	7.50	/hr	75
	Mach. And Equip. Charge								38
	Land Charge				Rent				85
	Facilities and Equipment 7				$   30,000		15%		225
	Management Charge								140
TOTAL FIXED COSTS									563
TOTAL COSTS						-Per Acre			2729
1	Planting trees is the second step in establishing an orchard and is typically performed
		the second year of the enterprise.
		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.