Organic Apple Production Using Interactive Budgets Germán Rodríguez, Ph.D. Jennie Popp, Ph.D. Rena Ruffin, M.S. Heather Friedrich, M.S. Curt Rom, Ph.D. Horticulture Industry Show January 14-15, 2011 Forth Smith, Arkansas University of Arkansas

OBJECTIVE Develop Interactive Budget Compare Total Costs Revenues Net Returns Generate Twelve Production Alternatives

DESIGN Interactive Budget Treatments Ground Cover Fertilizer

GROUND COVERS Four ground cover treatments: 1.Grass (Mowing) 2.Wood Chip Mulch 3.Compost Mulch 4.Paper Mulch

FERTILIZER TREATMENTS Three fertilizer treatments: 1.Poultry Litter 2.Organic Fertilizer 3.No fertilizer

BUDGET – COMPONENTS Summary Graphs Tables Detailed Budget Sensitivity Analysis Break-Even Points

SUMMARY Rates Interest Inflation Planting Distance In row Between rows Yields Production Year Ground cover Market Price Direct Processed Labor Price Management Labor Twelve Budgets

SUMMARY

GRAPHS

TABLES

DETAILED BUDGET

SENSITIVITY ANALYSIS

BREAK-EVEN POINTS

EXCEL INTERACTIVE ORGANIC APPLE BUDGET

BUDGET USEFULNESS Total Costs (Variable and Fixed) Revenues Net Returns Estimate Ground Cover Fertilizer Compare “What If” Questions Answer

LIMITATIONS  Certain level of general computer knowledge is required  Producers must have access to a computer with Microsoft Excel 2007 installed (Macros need to be enabled)  Activities are not broken down on a month-to-month basis

OUTGOING WORK  This budget is a “work in progress”  Data collection is ongoing

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