Bartlett Pear Production Costs
in Central Washington and Clark County
Stations Circular 305
Washington Agricultural Experiment Stations
Institute of Agricultural Sciences
State College of Washington
May 1957
Central Washington and Clark County, 1954
Bartlett Pear Production Costs
C. H. Zuroske,
2
H. L. Bolt,
3
1
and R. H. Cook
3
INTRODUCTION
This study was made to learn the cost of producing Bartlett pears. Over
60 orchards were studied to find out how pear growers produce a crop and how
much the crop costs them.
Management, labor, capital, and land costs of pear growing, as well as
operating costs, were included . .
This study brings! ~arlier studies up to date and supplies additional information not previously rqported. The Washington Fruit Commission and the
Department of Agricultural Economics, State College of Washington, studied
Bartlett pear costs in 1950. This 1954 study gives more recent information on
both production practices and costs.
All but 1 per cent of Washington's Bartlett pears are produced in Central
Washington (Wenatchee- Yakima area). Costs were studied on 58 Central Washington and 6 Clark County orchards.
The first section of this report is about Central Washington orchards.
Clark County study report begins on page 11.
The
PROCEDURE
A random sample was selected from a list of all pear growers in Central
Washington. Cost and other production information was obtained from the grower
by an interview. (For a detailed procedure, see Appendix B.)
CENTRAL WASHINGTON RESULTS
Average costs
The cost of producing Bartlett pears for canning on 58 Central Washington
orchards in 1954 averaged $673. 86 per acre. The average cost per ton was
$66. 10 (Tables 1 and 2).
Costs in 6 Clark County orchards were similar: $636. 94 per acre, or
$65 per ton (Tables 13 and 14).
Per acre costs include all expenses for pears delivered to the warehouse.
Warehouse and selling costs are not included.
1
2
3
Work conducted under Project No. 1295.
Associate Agricultural Economist, State College of Washington.
Formerly, Field Research Assistant, State College
o~
Washington.
2
Table 1.
Central Washington Production Costs, Investment and Yields.
1954
Amount
Item
58
Number of orchards in study
5. 7
Acreage of bearing Bartletts per orchard
10.2
Yield per acre (tons)
Production and harvesting costs (per acre)
$
673.86
66. 10
Production and harvesting costs (per ton)
Average investment per acre in:
1,803.00
Lands and orchards
Buildings and improvements
219.00
Machinery and equipment
263.00
...
•
•
Recent- Year Costs Are Higher
Table 3 shows how costs have risen. Costs .in other states, as well as
Central Washington, were lower in past years. The figures are from earlier
cost studies.
Most Bartlett Orchards Are Small
The average planting of Bartlett pears in 1954 and 5. 9 acres. One -third
of the Bartlett plantings were of more than 30 acres. Over one -half of the pears
were 2- to 10 -acre plantings. Ninety-three per cent of the growers had 2- to
10-acre blocks of Bartletts.
Table 3.
Costs of Producing Pears, Washington, Oregon and California in 1954
and Earlier
Year
of study
Location
of study
Tons y1eld
per acre
Cost
per acre
Cost
per ton
1928 (1925-29 av.)
Washington
11.84
$290. 19
$24.50
1932
Washington
9. 77
156.44
16. 01
1950
Washington
8.5
613.49
73.22
10.0
332.54
33.25
1953
& Earlier
California
194 7-53 av,
Oregon
6. 7
439. 85
67.65
1953
Oregon
6. 5
497.53
76.80
1954
Washington
10.2
6 73. 86
66. 10
-~
3
Table 2.
Central Washington Bartlett Pear Production Costs, 58 Growers, 1954
Item
.,
Land and Orchard for Pears
Interest on investment (5o/o) . . · · · · · · · · ·
Establishing orchard (Cost 7 27 years bearing life)
Water charges. . . .
· · · · · · · ·
Buildings and Improveme_nts (proportion to pears)
Interest on investment (5o/o) . · . . . . ·
Depreciation (Beginning value -7 years use left)
Repairs and maintenance. . . . . . . .
Machinery and Equipment (proportion to pears)
Interest on investment (5o/o) . . . . . : .
Depreciation (Beginning value 7 years use left) ·
Repairs and maintenance .
··
Farm vehicle licenses
Fuel, oil, and grease
Machine hire .
Orchard Labor Costs (for pears)
Pruning . . . . . .
Brush disposaL . . · .
Discing, cultivating and mowing.
Ditching
Irrigating.
Spraying o
Thinning .
Propping .
,... Picking.
~ Scattering empty boxes.
~ Yarding Out. . . . .
ro Hauling to warehouse.
:I: Picker supervision.
Fall prop pickup.
New tree planting .
Fertilizing . . . .
Miscellaneous labor
Orchard Material Costs (for pears)
Spray. . .
Fertilizer.
Cover crop seed.
New trees.
Miscellaneous materials
Other Expenses (proportion to pears)
Land and property taxes · · ·
·
Insurance .( Workmen's Compensation, etc.)·
Electricity · · · · · ·· · ·
Telephone· · · · · · · · ·
Interest on operating capital
Operator's management
Miscellaneous expenses
(other than misc. labor and materials)·
Total·
·
·
·
·
·
·
·
·
·
·
·
·
·
·
·
Per acre
Per ton
·$ 90. 14
44.52
7.68
$ 8.84
4.36
0. 75
10. 97
16. 61
3.35
1. 08
1. 63
0.33
13. 15
41. 76
8.57
2. 13
16.24
2.63
1. 29
4. 10
0.84
0.21
1. 59
0.26
59. 86
4. 91
7.28
2.08
22. 24
11.48
32.85
3.69
64.64
5.87
0.48
0. 71
0.20
2. 18
1. 13
3.22
0.36
6.34
34.27
3.36
2.66
0. 54
4. 16
4. 17
0.26
0.05
0. 41
0. 41
41. 16
26.33
0. 18
1. 55
7.45
4.04
2.58
0.02
0. 15
0. 73
11. 81
7. ·49
3.44
2. 03
9. 37
50.00
1. 16
0. 74
0.34
0.20
0. 92
4. 90
0.47
0.05
·$673.86
$66. 10
J
4
Costs Vary Considerably Between Orchards
Table 4.
Number of Growers and Tons of Pears Produced at Different Costs
Cost per ton
Number of
growers
Percentage
of growers
Number
of tons
Percentage
of tons
$ 30- 39
3
5. 3
272.0
8. 1
40- 49
9
15. 8
996. 0
29. 7
50- 59
9
15.8
585.6
17 . 5
60- 69
11
19.3
707.0
21. 1
70- 79
5
8.8
175. 0
5.2
80- 89
4
7.0
243.0
7.2
."
~
90- 99
2
3.5
58. 0
1.7
100-109
3
5.3
84.2
2.5
110-119
2
3. 5
97. 0
2.9
120-129
2
3.5
47.6
1.4
130-139
0
0
140-149
1
1.7
11. 0
0.3
150-159
2
3. 5
25.0
0.8
160 and more
4
7.0
54.0
1.6
0
0
A total of 193 man hours were required to produce an acre of Bartlett
pears, this study shows. This compares with 179 hours for Hood River, Oregon, in the period 1947-53.
Central Washing ton apple growers averaged 236 hours of labor per acre
in 1953 and 255 hours in 1950.
Picking, thinning and pruning are the big jobs in pear production; they
co-nstitute 71 per cent of the labor required for pear growing.
Wages Averaged $1. 15 An Hour
Table 5 shows the number of man hours spent on various orchard jobs.
The 1954 wage rates for the usual pear orchard jobs are given in Table 6.
This weighted average rate for all jobs was $1. 15 per hour. These rates do
not include board or other privileges except an occasional cabin for lodging.
5
Almost Three -Fourths of the Labor is Pruning, Thinning and Picking
Table 5.
Man Hours Worked on Orchard Jobs
Job
Pruning
Man hours labor
used per acre
50.0
Brush disposal
4.4
Discing and mowing
5. 2
Ditching
1.5
Irrigating
16. 0
,.
Spraying
4.2
Thinning
30.0
Propping
6.0
Scattering empty boxes
2.6
Picking
57.0
Hauling fruit
11. 8
After-harvest cleanup (empty boxes, ladders, props. etc.)
1.6
Fertilizing
2. 7
Total
193. 0
Much Labor Is Hired
The operator (orchardist) and family did some of the jobs connected wit h
producing pears. All of the growers with 2 acres and more hired some labor.
Growers did very little picking (1 per cent), but did most of the tillage work such
as discing and mowing (79 per cent).
Picking required 57 hours per acre. Discing and mowing required only
5 hours per acre. Hence, a weighted average percentage of the orchard work
done by the operator was determined. The operator and family did 35 per cent
of the work on pear orchards. The total labor cost from Table 2 was $254. 83
per acre. Thirty-five per cent of that amount was done by the operator and
family and amounted to $89. 19 per acre.
Table 6.
Cash Wages Paid Hired Labor
Job
Hourly wage rate
Pruning
l. 14
Cultivating and mowing
1.13
Irrigating
l. 13
(Continued)
'
6
Table 6.
Cash Wages Paid Hired Labor (Continued)
Job
Hourly wage rate
Spraying
1. 14
Thinning
1. 16
Propping
1. 12
Picking ( 13f per lug x 9 lugs per hour)
1. 17
Scattering empty boxes
1. 14
Yarding out
1. 12
Hauling pears to warehouse
1. 23
After-harvest cleanup (empty boxes, ladders, props, etc. )
1. 12
Fertilizing
1. 13
.
(
Table 7 shows how each job was divided between family and hired labor.
A High Percentage of Pear Growing Labor Was Hired
Table 7.
Percentage of Hired Labor and Percentage of Operator's and Family
Labor
Orchard Job
Percentage of
labor hired
Percentage of labor
Operator's and family
Pruning
58
42
Brus.h disposal
29
71
Orchard heating
46
54
Discing and mowing
21
79
Ditching
22
78
Irrigating
25
75
Spraying
36
64
Thinning
82
18
Propping
36
64
Scattering empty boxes
43
57
Picking
99
1
Picker supervision
14
86
Hauling fruit
64
36
After-harvest cleanup (empty boxes,
props, etc. )
33
67
Fertilizing
25
75
'
7
All Growers Fertilized
All 58 growers reported the use of supplemental nitrogen. These growers
applied an average (7, 114 lbs. divided by 58 growers) of 123 pounds of actual
nitrogen per acre. Nine growers used 947 pounds of actual P o
or 105
2 5
pounds of actual phosphate per acre.
The primary ingredient in the fertilizers used was nitrogen. Some phosphate was used. Different nitrogen carriers were used. Various nitrogen
fertilizers and number of growers using them are shown in Table 8.
Ammoniacal Nitrogen is Used by More Growers
Table 8.
Types of Nitrogen Fertilizer Used
Type of fertilizer
. a
N urn b er o f growers us1ng
Ammonium nitrate
17
Ammonium sulphate
16
Gaseous ammonia (NH )
13
3
Nugreen
6
Mixed (16-20-0)
6
Manure
4
Calcium nitrate
2
Undisclosed mixture
1
Other
1
a
Some growers use more than one type of fertilizer.
Dormant and Cover Sprays Used
Of the fifty-eightgrowers, fifty-seven used a dormant spray consisting
primarily of lime sulpher and/ or oil. Also, fifty-seven of the fifty-eight
growers used DDT as ·a cover sp:t:"ay. Forty-two growers used parathion. The
sprays used and the number using the spray are shown in Table 9. Table 10
shows amounts and costs of each spray.
Table 9.
Sprays Used for Insect and Disease Control
Sprays used
Number of growers using
Lime sulphur
45
!Dormant oil
50
Parathion (in dormant spray)
!DDT
2
57
(Continued)
I
8
Table 9.
Sprays Used for Insect and Disease Control (Continued)
Sprays used
Number of growers using
Parathion (cover)
42
Aramite
12
Malathion
23
Zero1ate
1
Polysulphide (dormant)
4
Tri-sulphide (dormant)
1
Table 10.
Average Amounts of Spray Used and Cost of Spray
Amount
Price
(cents)
Cost per acre
(dollars)
Lime sulphur
21 gals.
18
3.78
Dormant oil
15 gals.
44
6.60
DDT
27 lbs.
37
9. 18
Parathion
14 lbs.
93
13.02
Aramite
3 lbs.
72
2. 16
Malathion
7 lbs.
78
5.46
Spray
..
40.20
Stop -Drop (not including plane costs)
.63
40.83a
aThe difference between $40. 83 shown above and $41. 16 shown as the
spray material cost per acre in Table 2 is due to using whole numbers for
amounts of spray in the above summary.
·•
Furrow Irrigation is Most Common
Pears were irrigated seven times during the season. Apples have a
longer growing season in the same areas, Apples were irrigated nine times
during the 1953 season and used 23 man hours per acre. Sixteen man hours
were used per acre to irrigate pears. About the same percentage of pear and
apple growers used sprinkler irrigation systems.
Rill Irrigation is the Most Common System
Table 11.
Orchard Irrigation Methods
Irrigation Method
Pears ( 1954)
Rill (surface, furrow, ditch)
75o/o
6 7"/o
Sprinkler
20o/o
25o/o
5o/o
8o/o
Rill and sprinkler
Apples (1953)
11
Advertising Changes
Some growers thought the advertising assessment could be included as a
cost of production. In some past Washington studies, the advertising assessment was added to growing and harvesting costs. In other studies, this cost
has been added to the marketing charge and not included as a production (growing and harvesting) cost.
The 1953 and 1954 assessment for apples was 3~ per packed box. The
assessment for canning pears was $1. 25 per ton. These charges can be added
to the production cost in the 1953-1954 apple and pear studies when desired.
Returns on Investment
The needed data are:
( 1)
the investment and (2)
the returns minus cost.
1. Returns (Gross Income)
The average price received by growers for Bartlett pears in 1954
was $75. 40 per ton. The 1954 yield was 10. 2 tons per acre. The
gross return per acre was $764. 08 ($75. 40 x 10. 2).
2. Cost
The total cost of producing pears in 1954 was $673. 86 per acre
(Table 2). Of that total, $123.63 was interest on investment (paid or
equivalent if assets were owned). The total cost less investment cost
was $550. 23 per acre ($673. 86 minus $123. 63).
3. Investment
The total investment per acre was $2,441. 37
Land and orchards
l, 803. 00
Buildings and improvements
219.20
Machinery and equipment
263.00
Operating capital (cash or credit
needed for pruning, thinning,
spraying, etc. )
156.17
$2,441. 37
4. To get returns on investment we take gross returns minus cost except
interest cost divided by the investment. The result based on the above
data is: $764.08-$550.23 -;- $2,441.37 = 8. 76 per cent.
CLARK COUNTY DATA
Some nonirrigated Bartlett pears are produced in Clark County, Washington. The production cost per acre and per ton is nearly the same in Clark
County as in Central Washington. Clark County pear production requires no
irrigation labor or irrigation water. The land values in Clark County were
lower. On the other hand, labor costs were higher in Clark County than in
Central Washington. The itemized costs of Clark County orchards are given
in Tables 13 and 14.
How Costs Were Computed for Both Studies
1. Hired labor : Hours hired x rate paid per hour.
hours hired x $1. 20 per hour equals $240.
Example:
200 pruning
12
Table 13.
Clark County Production Costs, Investment and Yields
1954
Amount
Item
Number of orchards in study
6
Acreage of bearing Bartletts per orchard
5.8
Yield per acre (tons)
9. 8
Production and harvesting costs per acre
$636. 94
Production and harvesting costs per ton
$ 65.00
Average investment per acre in:
Lands and orchards
$1,000.00
Buildings and improvements
$103.80
Machinery and equipment
$371.60
2. Operator's labor: Hours x rate per hour (amount operator would need to
pay for equivalent labor).
3. Spray and fertilizer: Cost of materials to grower plus labor hours x hired
or operator's wage rate. Total amount for contract spraying and fertilizing usually includes labor, materials and equipment.
4. Other orchard practices:
Same procedure as for spraying and fertilizing.
5. Interest on land and orchard: Orchard value based on sale price of comparable orchards with adjustments for possible quality differences- -value of
orchard x 5 per cent interest. Example: The value of an orchard excluding buildings is $15, 000. Interest charge is $15, 000 x 5 per cent or '$ 750.
6. Charge for buildings and improvements: Present value of farm buildings
not including operator's dwelling x 5 per cent is interest charge.
value -; years of remaining useful life is depreciation charge.
Present
7. Interest on operating capital: Amount x 6 per cent. Example: $1,500 used
for fertilizer, labor, spray material, etc. $1,500 x 6 per cent is $90.
8. Interest and depreciation: Charge for machinery and equipment was computed the same as charge for buildings and improvements.
9. Repairs: Labor and material cost for repair of improvements, machinery
and equipment.
10. Gasoline, oil, licenses, insurance, irrigation water, electricity and telephone: Total amount paid with per cent chargeable to pears apportioned.
Example: Electricity $132- -amount used in home as living expense was
$60. Amount remaining chargeable to farm was $72. One-half of this farm
was in pears, one -half in other fruits. An estimated one -half of farm electricity chargeable to pears would be $36.
15
APPENDIX A
Weighted and Unweighted Average Costs
The term 11 average cost'' often is used in reporting production costs.
term often, however, refers to two different costs.
The
In the case of this pear study the simple average or unweighted average
cost was $83. 17 per ton. Weighted average cost was $66. 10 per ton.
The "average" grower produced pears for $83.17 per ton. The"average"
ton of pears cost $66. 10 to produce.
· An example:
Grower A produced 2 tons of pears at a cost of $100 per ton.
Grower B
produced 6 tons of pears at a cost of $80 per ton.
Grower A produced pears at a cost of $100 per ton and Grower
B produced pears at a cost of $80 per ton.
The average grower cost would be figured as:
$100+ 80= $180
$180
+2 =
$90 unweighted average cost.
A weighted average cost would include the cost of each ton of pears separately.
Grower A produced 2 tons at $100; B, 6 tons at $80 per ton.
"The costs would be:
Grower A's 1st ton cost $100
Grower A's 2nd ton cost $100
Grower B' s 1st ton cost $80
Grower B' s 2nd ton cost $80
Grower B' s 3rd ton cost $80
Grower B's 4th ton cost $80
Grower B' s 5th ton cost $80
Grower B 's 6th ton cost $80
$680
The grand total cost of A & B was $680
$680 -;. 8 tons = $85 weighted average
The unweighted cost of the average grower in the preceding paragraph was
$90 per ton.
The weighted cost above was $85 per ton. There is a difference of$5 per ton
depending on which of the two methods is used. At the beginning of this section of
this report, the costs for the 58 growers were $66. 10 weighted average and$83. 17
unweighted avel"age.
17
APPENDIX B
Procedure
A list of names and addresses of Central Washington Bartlett pear producers was obtained from the Washington State Fruit Commission.
The list was divided into blocks of 2.0 names. Then the third name in each
block of 2.0 was picked to be interviewed. The fourth name was a first alternate and the fifth name was an alternate to the fourth. No calls were made beyond the third alternate. If the name on the mailing list proved to be a nongrower, no alternate was interviewed. A nongrower in the sample was presumed to represent a proportion of nongrowers on the list.
The selected growers were contacted. An interviewer obtained information on 1954 production methods and costs for the grower's orchard. The detailed production cost data were obtained except from those growers with
fewer than 2. acres of Bartletts. From the growers with fewer than 2. acres,
data on Bartlett acreage and Bartlett tree numbers were obtained.
The sixty growers from whom detailed cost information was obtained produced a total of 4,612. tons of Bartlett pears. In addition to the 60 growers in
the sample with 2. acres or more, there were thirty-two growers who had fewer than 2. acres (averaged three-fourths acre each). These thirty-two growers produced an estimated 2.33 tons of pears. The sixty plus the thirty-two
growers produced 4, 845 tons of pears in 1954. The sample was 5 per cent of
the total number of growers. Sample calculations imply that all growers in
Central Washington produced 2.0 times 4, 845 tons or a total of 97, 600 tons.
The USDA reported the total production in Central Washington to be 100,000
tons. Calculation based on sample had 3 per cent less production than that
reported by the USDA for all growers. Hence, in terms of production, the
sample closely represents the total number of growers.
A judgment sample (practically the universe- -all growers) was used in
Clark County.
19
REFERENCES
The following references are of special value for Bartlett pear cost
history and study procedure.
1.
Adams, R. L. Farm Management Crop Manual.
versity of California Press. 1953.
2.
Hampson, Chester C. and Landerholm, E. F. Cost of Producing Pears
in Washington. Washington Ag. Expt. Stas. Bul. No. 307. April 1935.
3.
Johnson, Neil W. Economic Aspects of the Washington Fruit Industry.
(Apricots, Cherries, Peaches and Pears) Washington Ag. Expt. Stas.
B ul. No. 238. April 1930.
4.
Kuhlman, Gustav W. and Irish, Arthur E. Cost of Producing Apples and
Pears in the Hood River Valley, Oregon. Oregon Ag. Expt. Sta. Cir. of
IIlformation 535. December 1953.
5.
Mumford, Curtis D. and Irish, Arthur E.
P~ars in the Hood River Valley, Oregon.
Information 545. September 1954.
6.
Shultis, Arthur and Stice, N. W. Sample Cost Analysis for Producing
Bartlett Pears in Lake County. California Ag. Extension Service, December 1953.
7.
Swedlund, H. A. , Wilcox, E. C. , Grahm, B. M. and McGregor, R.
Wa.s hington Tree Fruits. Washington Crop and Livestock Reporting Service. Washington State Department of Agriculture: USDA. December 1952.
8.
Unpublished Manuscript, Methodology Used in Cost of Production of Soft
Fruit, 1950. Manuscript in Department of Agricultural Economics Library, State College of Washington.
9.
Washington Fruit Commission. Cost of Production of Bartletts. ( 1950).
Mimeographed material. Washington Fruit Commission, Yakima, Washington.
Revised Edition.
Uni-
Cost of Producing Apples and
Oregon Ag. Expt. Sta. Cir. of
SUMMARY
It cost $66. 10 per ton ($673. 86 per acre) to
produce Bartlett pears in Central Washington in
1954. The average block of Bartletts had 5. 9
acres.
The average acre yielded 10. 2 tons of pears.
An additional ton of pears raised costs little per
acre (2. 7 cent), but cut costs per ton 5 per cent.
.-
Bartlett pear production required 193 man
hours. The jobs of picking, pruning and thinning
made up 71 per cent of the total labor used .
The average wage rate for all hired work was
$1. 15 per hour. Sixty-five per cent of the labor
was hired and 35 per cent was operator or family
labor.
Ammonium nitrate, ammonium sulfate and
gaseous ammonia were the most commonly used
fertilizers. Growers applied 123 pounds of actual nitrogen per acre.
Over one -half of the spray cost was for parathion and DDT for codling moth control. Most
growers used an oil and/ or sulfur dormant sp:ray,
Clark County producers (nonirrigated pears)
had practically the same yields and the same costs
per acre as Central Washington producers. Some
Western Washington costs were lower; others were
higher with almost the same total costs.