This workbook can be used to help you evaluate whether top-working an established apple block to another cultivar is economical. It estimates the cost of the various steps in the grafting process and compares them with the alternative of purchasing new trees, preparing the site, and replanting the orchard.
User Instructions:
This analysis is conducted on a one-acre basis. The data are collected in various spreadsheets which are then are used to calculate yearly cash flow estimates over the life of each alternative. The cash-flows are then used to generate various investment performance measures including net present value, internal rate of return, and cumulative cash flow to help you decide if top-working is a financially viable alternative to replanting. Top-working and replanting are also compared to the alternative of keeping the existing orchard (the "do nothing" option).
Download Workbook:
1) This workbook is comprised of 12 spreadsheets contained in the tabs at the bottom of the page.
2) Each tab is set up as a number of data entry steps which allow you to customize the analysis to your particular situation.
3) In some cases, you can select a default values rather than enter your won numbers. However, to get the most accurate results you should use your own values for this important financial decision. For many of the grafting questions, a range of values based on grower interviews is provided to help you think through the process. These numbers vary greatly from grower to grower and are meant only for guidance.
Workbook tabs:
→ "Parameters" tab collects information on interest rates, labor costs, harvest costs, pruning costs, fuel prices, and machinery usage.
→ "Yield & income projections" tab collects information on the projected yields and prices to be used for the comparisons.
→ "Grafting prep" tab collects information on the number of grafts and amount of time to required to complete the various steps to get the trees ready for grafting.
→ "Grafting" tab collects information about whether you are doing the grafting yourself or having a service do it for you. It also collects data on time spent on post-graft care and nurse limb management.
→ "Year after Grafting" tab collects information about time required for resealing grafts, training and tying of grafts, and nurse limb removal.
→ "Land prep" tab collects data on the cost of removing trees and preparing the land for replanting. You have the option of using TFPG budgets or adjusting the costs to fit your own situation.
→ "Planting" tab collects data on the cost of planting either a medium or high density orchard. You have the option of using TFPG budgets or adjusting the costs to fit your own situation.
→ "Non-bearing year" tab collects data on the cost of maintaining a non-bearing orchard including training and fruit removal costs.
→ "Intermediate year" tab collects data on the cost of maintaining and harvesting an immature orchard. Harvest cost will be adjusted in the cost flow estimates reflecting the data provided in the "Yield & income projections" tab.
→ "Mature year" tab collects data on the cost of maintaining and harvesting a mature orchard. Harvest cost will be adjusted in the cost flow estimates reflecting the data provided in the "Yield & income projections" tab.
→ "Financial comparisons" tab compares the estimated cash flows from the "do nothing", "top-working", and "replanting" options. The financial investment measures net present value, internal rate of return, and cumulative cash flows are presented to help you determine which option is the best choice for your operation.
