ISHS Acta Horticulturae 135: VII Symposium on Horticultural Economics, XXI IHC
RATES OF RETURN OF FOUR APPLE PRODUCTION SYSTEMS |
| Authors: | R.C. Funt, A.E. Lines, D.C. Ferree |
| Abstract:
Pyramid hedgerow (422t/ha), interstem (795t/ha), dwarf trellis (1121t/ha) and slender spindle (3151t/ha) production systems, for Golden Delicious apples were established in 1973 and began production in 1975. All costs and returns according to grade were recorded until 1981. The pyramid hedgerow and the dwarf trellis system were the first to have a cumulative return greater than cumulative costs which occurred in the seventh year. These systems had the highest internal rates of return over the 9 years of study. Although the trellis system had a slightly higher rate of return than the interstem system, the difference was not considered economically significant. With current interest rates greater than 14%, the pyramid hedgerow would be preferred for growers who are limited in capital but have ample land. Growers, who have limited land and ample capital, should consider the high density trellis or the interstem system. The slender spindle system had the lowest rate of return and should not be considered by growers unless lower input costs can be implemented by new technology. | |
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