Tree Fruit Production Budgets

This section presents sample tree fruit budgets based on projected costs, technology, and management for the 2006 crop year.* Enterprise budgets represent estimates of the costs and returns associated with the production of specified agricultural products. The information contained in enterprise budgets can be used by agricultural producers, extension specialists, researchers, financial institutions, governmental agencies, and others for making decisions in the food and fiber industry. Budgets are used:

  • for farm planning and enterprise evaluation,
  • as a basis for extending credit,
  • to complete cash flow projections,
  • to provide basic data for economic research, and
  • to inform nonfarmers of the costs incurred in producing food and fiber crops.


To be most effective, a budget should be prepared with a specific objective in mind. The budgets in this section were prepared to provide general information for several different users and do not apply to individual orchards. They should be used, with appropriate modifications, as guides for preparing budgets in individual situations.

These sample budgets should help you ensure that all costs and receipts are included in your budget. Costs are often difficult to estimate in budget preparation because they are numerous and variable. Therefore, you should think of these budgets as a first approximation and then make appropriate adjustments using the "your estimate" column to add, delete, and adjust items to reflect your specific resource situation.

The sample budgets were developed using a computerized budget generator. Input data reflect current production practices and prices. Major subheadings in the budgets are receipts, variable costs, fixed costs, and total specified costs. They are defined as follows:

  • Receipts are the gross returns (price times quantity) from production. For tree fruit, receipts may be zero for several years. Because yields, grades, and prices are so variable, you should use representative values for your operation.
  • Variable costs are costs that vary depending on the level of production for such inputs as fertilizer, herbicides, insecticides, fungicides, and labor.
  • Fixed costs are costs that do not vary by level of production and are incurred by virtue of owning assets such as machinery and land. Depreciation, insurance, and taxes are examples of fixed costs.
  • Total specified costs are the sum of variable and fixed costs. You may want to include other costs including land charges, real estate taxes, and an annual charge for the costs of establishing the orchard.


Seven types of tree fruit production budgets are included here:


Nonbearing and intermediate production years are examples of other budgets that you could develop.

The budgets were developed based on a tree spacing of 10 x 16 (272 trees/A) for fresh-market apples, 20 x 28 (77 trees/A) for processing apples, 14 x 22 (141 trees/A) for peaches, 18 x 20 (121 trees/A) for tart cherries, and 20 x 24 (89 trees/A) for sweet cherries. In calculating returns above specified costs, harvest costs of $1.50 per bushel for fresh-market apples, $2.80 per cwt for processing apples, $2.25 per bushel for peaches, $0.08 per pound for tart cherries, and $0.35 per pound for sweet cherries were used. The pesticides listed in the budgets are for example only; see Part III: Chemical Management for a complete listing of recommended materials.


* Thanks to Rob Crassweller, Dave Biddinger, Larry Hull, Lynn Kime, Greg Krawczyk, and Jim Travis for their assistance in updating and improving these budgets. For a more detailed discussion on the use of crop budgets, see G. L. Greaser and J. K. Harper, Enterprise Budget Analysis, Agricultural Alternatives Series, Penn State Cooperative Extension.

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