Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1914-08-26
BUSINESS METHODS IN
HANDLING ORCHARDS.


bliss 8. Brown, Professor OF horticulture, in
Farmers Week Course, University Of Maine,
isit.l
The very heading OF this subject presup-
poses that business methods are more or
less lacking in the general field of agri-
culture, ana specifically a. applied
to the growing and marketing of fruit.
so, before entering upon general dis
cussion of this subject, let US first get a
common understanding OF just what is
meant by "business methods.
At the.outset, wish to disabuse your
minds Of the fact that business methods
do not consist in making shrewd bar
gains or trading horses and getting
little money "to boot". 1t has nothing to
high rate of interest on forced loans, or
taking advantage OF straitened circum-
stances of brother farmer. Our court
records are far too replete with such
shrewdness, aud the helping hand that
| first reaches for the pocket book is far
from the first principles OF good business.
Business methods, then, should apply
OF production. 1t means to estimate the
cost OF barrel Of apples or quart OF
berries in terms of cost OF production. As
the dollar is the unit By which we measure
labor, so should labor be the unit by
which to.measure the cost OF production.
Many farmers in Maine are producing q
barrel OF apples at a cost OF Il and selling
- f<sS al as.fN ~ 20 ~
the case, are continuing the same practice
year after year, making slaves OF them
selves, ..drudges of,their wives, and instiil-
ing into their children lasting hatred for
the pursuit OF agriculture.
A little study, few figures made daily,
a little reflection upon the why and
wherefore of 1t all, would reverse the
above conditions, and then the individual
becomes prosperous, and country life be-
comes delight.
The time has long since passed when
manufacturers figure their costs at the
end OF the year, or the country grocery
man pencils his accounts on top OF the
counter. Banking firms, trust companies,
wholessling houses, and even the commits
know at the close of each day whether he
has made profit or run behind. Yet
nine-tenths OF the producers do not know
at the end of the year whether their fartn
has paid them any interest ON the money
invested or given them a fair wage for
their own time.
Manufacturers divide their cost ac-
"a ,tatn an hmxra
an account for the raw material; one for
the cost OF labor in converting that ma
terisl into manufactured goods; an
other for the cost OF machinery, build
ing, up-keep, etc. He has another
for the selling Of manufactured goods;
still another for the delivery OF the ma
teriai to the purchaser, and the collecting
of accounts. Every cent that is expended
or received is itemized, and then the cos,
OF every article manufactured is calculated
to abou. the fifth decimal place. When
all this is done, they hire an efficiency
engineer to look for the leaks. Many
concerns pay such efficiency men 900
week, to study for lost motion and elimi-
nate unnecessary movements.
Yet how many on the producing side
know what a barrel OF apples costs, not
to mention the apportioning Of this cost
among the various branches, such as
spraying, pruning, culture, harvest
ing, etc.s
Every producer has a certain amount OF
money invested in land or personal prop
erty. On this he should receive certain
rate of int crest, at least equal to what he
would have TO pay IL his holdings ere rep
resented by a mortgage. Tools are con-
stantly wearing out, buildings and fences
are always in need of repairs. and to cover
this depreciation a certain sum usually
10 per cent. OF their cost value) should be
deducted and cannot properly be included
in net receipts. II the owner does q part,
or all Of the work, he should receive a
wage commensurate with his knowledge
and ability to earn. There are legitimate
expenditures which the orchardist does
not usually take into account.
Let me state some problems, and il
these can be answered in the affirmative,
then orcharding can be ligitimateiy in
cluded in the "Boost Maine" enterprises.
First, would ask, is there an orchard in
the State that for a period OF live years
could be properly handled, with all the
labor or work, including manager, paid for
out OF the revenues OF the place. and still
return act dividend of per cent. on the
actual money invested? This presupposes
that the teams, tools and buildings will be
as good at the end OF the five years. period
as they were at the beginning. II there is
such an orchard, it will be ample proof
that there may be more. For what has
been done can be done again.
Ny second problem would be this:
Could anyone take over an orchard in any
condition, for any period of time, and
give mortgage for its full face value at
per cent. and hope ever to pay it Off II
this is possible, and at the same time the
place can be kept in good condition, no