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. 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. 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.