. Bulletin. Agriculture -- New Hampshire. May, 1931] Studies in Economics of Apple Orcharding 65 Other Costs Land value was taken at approximately that for purposes other than orchard and varied from $30 to $80 per acre. For use of land 5 per cent, was estimated for interest and 2^ per cent, for tax on land. Interest was figured at 5 per cent, on value of the trees and tax on trees was put in at II/4 per cent. Since the value of the trees results partly from the value of apples, it would be reasoning in a circle to use this figure in determining the cost of producing fruit. But with Hie value
. Bulletin. Agriculture -- New Hampshire. May, 1931] Studies in Economics of Apple Orcharding 65 Other Costs Land value was taken at approximately that for purposes other than orchard and varied from $30 to $80 per acre. For use of land 5 per cent, was estimated for interest and 2^ per cent, for tax on land. Interest was figured at 5 per cent, on value of the trees and tax on trees was put in at II/4 per cent. Since the value of the trees results partly from the value of apples, it would be reasoning in a circle to use this figure in determining the cost of producing fruit. But with Hie value of tree assumed as explained briefiy above and with assumed rates per hour for labor, the costs of producing apples as shown in Table 28 can be used in studying the relative situation on the different farms; and if we have the assumptions in mind, the average cost of producing apples will be reasonably accurate. Total Net Cost , With these assumptions, the total cost prior to harvest on all farms ' for all three years was $62,180 (Table 28). Of this amount, per ffPr - - JBoAes ^900 Acfuol yie/d. 6 7 Far/n Number Fig. 16. Total net cost of producing apples on twelve farms This includes in addition to current operating expenses a charge for use of land, interest and taxes on tree values and appreciation or depreciation in value of trees. Farm 6, producing Baldwins only by extensive methods, and Farm 8, by a combination of extensive methods and high yields of Mcln- / tosh, had lowest costs. cent, was for use of land. per cent, for use of trees and per cent, for current operating expenses. But since there should be a credit of $8,114 for tree growth, the net cost of producing apples was only .$54,066 which is $514 per 1,000 boxes normal expected yield and $466 per 1,000 boxes actual yield. In cases of joint cost such as this, it is probably more correct to state that an estimated expense of $62,180 resulted in the production of 116,000 boxes of apples and also tree gr
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