An economic comparison of five high density apple planting systems

We performed an economic analysis of 5 common orchard planting systems (Slender Pyramid/M.26 * 840 trees/ha, Vertical Axis/M.9 * 1538 trees/ha, Slender Axis/M.9 * 2244 trees/ha, Tall Spindle/M.9 * 3312 trees/ha and Super Spindle g 5382 trees/ha) using composite yield and labor usage data from several replicated research plots in New York State. Other costs and fruit returns were averages from a group of commercial fruit farms in New York State. Feathered tree price was $5.30, discount rate was 5% and farm gate fruit price was $0.30/kg. The systems varied in costs of establishment from a low of $17,800/ha for the Slender Pyramid system to a high of $49,600 for the Super Spindle system. The differences in establishment costs were largely related to tree density. All of the systems had a positive internal rate of return (IRR) and Net Present Value (NPV) after 20 years. They ranged from a low of 7.5% for the Slender Pyramid system to a high of 11.1% for the Slender Axis system. Profitability as measured by NPV/ha was greatest at the intermediate densities with the optimum density at 2600 trees/ha when NPV was calculated per hectare, but only 2200 trees/ha when NPV was calculated per $10,000 invested. The earliest break-even year for NPV was year 12 for the Slender Axis, year 13 for the Tall Spindle systems, year 14 for the Super Spindle and the Vertical Axis systems and year 17 for the Slender Pyramid system. An estimate of the annual contribution to farm cash flow, in discounted dollars, (annual equivalent cash flow) for each system showed that the number of hectares required to produce a $100,000 annual profit to the business was 222 for the slender pyramid system and 84-117 ha for the other 4 higher density systems. Land cost, tree price and support system cost had a large impact on lifetime profits. Investment risk increased with increased investment costs, making the Super Spindle system riskier from an investment perspective.