Updated March 2020
CCD-FS-14
Authors: Matt Ernst and John Strang
Overview
Apples are the most widely planted tree fruit in Kentucky. The 2017 Census of Agriculture reported 1,106 acres of apple production in the state, with 784 acres bearing fruit. While total acreage has declined since the 1980s, Kentucky apple production has shifted toward smaller orchards focused on local markets, including farmers markets, on-farm sales, and value-added products such as cider and baked goods.
U.S. apple yields have increased over time, averaging 33,967 pounds per acre from 2013 to 2018. Higher-density planting systems are one contributing factor to these yield gains. In Kentucky, producers are increasingly evaluating different orchard systems based on their costs, labor requirements, and potential returns.
This publication summarizes key economic considerations for three apple production systems in Kentucky: semi-dwarf, conventional dwarf, and tall spindle dwarf. Costs vary widely depending on site conditions, management practices, and producer experience, so these estimates are intended for comparison purposes rather than precise budgeting.
Production Systems
Three primary apple production systems are commonly used in Kentucky, differing in tree density, management intensity, and yield potential.
Apple Planting Characteristics
| System | Spacing | Trees per Acre | Yield Potential |
|---|---|---|---|
| Semi-Dwarf | 14' x 20' | 155 trees | 300–350 bushels/acre |
| Conventional Dwarf | 8' x 16' | 340 trees | 550 bushels/acre |
| Tall Spindle Dwarf | 4' x 12' | 907 trees | 1,000 bushels/acre |
Higher-density systems require greater upfront investment and management but typically produce earlier and achieve higher yields per acre.
Preplanting and Planting Cost Considerations
Establishment costs vary significantly depending on site preparation, planting system, and infrastructure needs.
Land Preparation
Orchard land preparation costs depend on site conditions and may include tillage, cover cropping, fertilizer, and lime applications. Additional costs may be required for grading, stump removal, or land clearing. In some cases, site preparation costs may exceed $5,000 per acre.
Wildlife Control
Wildlife damage, particularly from deer, can significantly impact orchard profitability. Preventative measures may include fencing, tree guards, and repellents.
Tree Support Systems
Higher-density orchards require additional infrastructure such as posts, wires, and tree stakes. These systems increase both material and labor costs compared to semi-dwarf orchards.
Planting Cost Components
| Category | Semi-Dwarf | Conventional Dwarf | Tall Spindle Dwarf |
|---|---|---|---|
| Trees | 155 | 340 | 907 |
| Tree guards | 155 | 340 | 907 |
| Stakes | — | 340 | 907 |
| Posts & wire | — | included | included |
| Clips | — | 680 | 2,425 |
| Anchors | — | included | included |
| Misc. supplies | — | $40–$100 | $40–$100 |
| Seasonal labor | 20–30 hrs hired + 10 hrs owner | 30–40 hrs hired + 20 hrs owner | 80–90 hrs hired + 30 hrs owner |
Higher tree density substantially increases both material and labor requirements during establishment.
Labor Considerations
Labor is one of the most significant costs in apple production and varies by system and management stage.
Planting Labor
| System | Estimated Labor | Estimated Cost (@ $12.50/hr) |
|---|---|---|
| Semi-Dwarf | 25 hours | $312.50 |
| Conventional Dwarf | 35 hours | $437.50 |
| Tall Spindle Dwarf | 85 hours | $1,062.50 |
Higher-density systems require significantly more labor during establishment.
Pruning and Training
Dwarf systems benefit from smaller tree size, making pruning easier and potentially less time-consuming per tree. However, training and thinning labor requirements are higher, increasing total labor costs in later years.
Harvest Labor
An experienced worker can harvest approximately 12.5 bushels per hour. A yield of 450 bushels per acre requires approximately 36 hours of harvest labor, plus an additional 15 to 25 hours for packing and grading.
Irrigation Considerations
Irrigation is recommended for all new apple plantings in Kentucky, particularly for high-density systems that rely on drip irrigation and fertigation. Producers without existing irrigation infrastructure will incur additional startup costs.
Production Cost Considerations
Disease and pest management are typically among the highest annual production costs, alongside labor. These costs tend to be similar across planting systems and do not vary significantly with planting density.
Marketing costs are also frequently underestimated, especially for direct-market operations. Expenses may include labor, transportation, signage, and digital marketing efforts. Producers are encouraged to develop detailed marketing plans and budgets.
Establishment and Cost Comparison
Higher-density systems have higher initial establishment costs but typically produce earlier and yield more fruit over time. This can result in lower per-unit production costs in full-bearing years.
Estimated Establishment Costs per Acre
| Category | Semi-Dwarf | Conventional Dwarf | Tall Spindle Dwarf |
|---|---|---|---|
| Preplanting Year | $1,150 | $1,150 | $1,150 |
| Planting Year | $3,175 | $5,025 | $15,150 |
| Growing Year(s) | $2,900 | $3,850 | $5,775 |
| Full Bearing Year | $1,750 | $2,600 | — |
| Total Establishment Cost | $7,225 | $7,925 | $18,900 |
Estimated Cost per Bushel (Full Bearing)
| System | Cost per Bushel |
|---|---|
| Semi-Dwarf | $12.84 |
| Conventional Dwarf | $10.50 |
| Tall Spindle Dwarf | $9.90 |
Higher yields in dwarf systems spread costs over more production, lowering per-unit costs despite higher initial investment.
Summary
Apple production remains a viable enterprise in Kentucky, particularly for growers targeting local and direct markets. High-density systems offer earlier production and higher yield potential but require greater capital investment and management intensity.
Profitability is highly sensitive to yield, market prices, and establishment costs. Producers should develop detailed, site-specific budgets to evaluate economic feasibility before establishing an orchard.
Additional Resources
| Resource | Link |
|---|---|
| CCD Apple Resources | https://www.uky.edu/ccd/production/crop-resources/fruit/apples |
| Penn State Apple Trellis Guide | https://extension.psu.edu/apple-trellis-construction-for-high-density-orchard-systems |
| Penn State Tree Fruit Budgets | https://agsci.psu.edu/research/extension-centers/frec/resources/tree-fruit-budgets |
| Ohio State Apple Budget | https://aede.osu.edu/research/osu-farm-management/enterprise-budgets/archived-budgets-2009-2001 |
| NC State Apple Resources | https://apples.ces.ncsu.edu/# |
| UT Pricing Guide | https://utextension.tennessee.edu/publications/Documents/PB1803.pdf |
| UT Marketing Channels Guide | https://utextension.tennessee.edu/publications/Documents/PB1796.pdf |
Reviewed by
Doug Archbold, UK Horticulture Professor, and Daniel Becker, UK Extension Associate
Suggested Citation
Ernst, M., & Strang, J. (2020). Economic Considerations for Apple Production in Kentucky. CCD-FS-14. Lexington, KY: Center for Crop Diversification, University of Kentucky College of Agriculture, Food and Environment. Available: http://www.uky.edu/ccd/sites/www.uky.edu.ccd/files/apple_econ.pdf