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				2000 APPLE PRODUCTION BUDGET
				Non-Bearing (Years 2-3) 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
	Herbicides 3								90
	Insecticides 3								40
	Fungicides 3								48
	Fuel, Oil, Grease								5
	Repairs								5
	Miscellaneous 4								12
	Hired Labor 5
		Pruning			200	trees	1.00	/tree	200
		Mowing and other			10	hours	7.50	/hr	75
	Int. on Oper. Cap. 6				12	mo.	9.0%		44
TOTAL VARIABLE COSTS						-Per Acre			536
FIXED COSTS
	Operator Labor Charge 5				8	hours	7.50	/hr	60
	Mach. And Equip. Charge								38
	Land Charge				Rent				85
	Facilities and Equipment 7				$   30,000		15%		225
	Management Charge								130
TOTAL FIXED COSTS									538
TOTAL COSTS						-Per Acre			1074
1	Annual budget for years 2-3 of apple enterprise.  After establishment and before fruit bearing.
	Apple trees typically do not produce fruit 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 12 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.