2026 Cost Estimates of Establishing, Producing, and Packing Early-Season Mahogany Sweet Cherries in Washington State

Preface

The results presented in this WSU publication serve as a general guide for evaluating the feasibility of producing early-season mahogany sweet cherries in Washington State. The analysis relies primarily on input cost centers representative of the 2025 production year, with labor rates updated to reflect prevailing conditions as of 2026.

This publication is not intended to be a definitive guide to production practices, but it is intended to be helpful in estimating the physical and financial requirements of comparable plantings.

Specific budget assumptions were adopted for this study; however, these assumptions may not represent the conditions in all production and marketing situations, as production costs and returns vary across orchard operations depending on the following factors:

Cost estimations in the enterprise budget also vary depending on the budget’s intended use. To avoid drawing unwarranted conclusions for any particular orchard, readers must closely examine the assumptions made in this guide and then adjust the costs, returns, or both as appropriate for their own orchard operation.

Early-Season Mahogany Cherry Production in Washington State

Washington State is the leading producer of sweet cherries in the United States. According to the USDA Noncitrus Fruits and Nuts 2024 Summary (May 2025), the utilized production of sweet cherries in the US totaled 360,710 tons in 2024, of which Washington accounted for 200,970 tons or about 56% (USDA NASS 2025a). Sweet cherries remain one of Washington State’s high-value specialty crops, with farm–gate value of approximately $434.8 million in 2024. In recent years, Washington’s share of total US sweet cherry production has generally ranged between 55% and 63%, depending on relative crop sizes and weather conditions across producing states (USDA NASS 2025b). Seasonal timing plays a central role in determining both market access and price outcomes across the production calendar.

For the purposes of this study, early-season mahogany sweet cherries are defined as fruit harvested on or before June 18. There is no single calendar date that uniformly defines “early” harvest across Washington. Harvest timing varies substantially by latitude, elevation, and accumulated heat units among production regions, such as the Columbia Basin, Yakima Valley, and Wenatchee district (WSU Tree Fruit 2026). Warmer districts in the Columbia Basin and lower Yakima Valley initiate harvest as early as late May and more typically early to mid-June, whereas cooler and higher-elevation orchards may begin closer to late June (Van Well Nursery 2026; WSU Tree Fruit 2026).

Based on shipment data from 2021–2025, early-season fruit represents approximately 11% of total shipped volume, compared to 54% for mid-season (June 19–July 15) and 35% for late-season shipments (on and after July 16) (WSTFA 2026). Although early-season fruit accounts for a relatively small share of total volume, it occupies a strategically important market window positioned immediately after California’s Central Valley season. California sweet cherry harvest typically begins in early May and can extend through June, depending on district and year (California Cherries 2026). Washington’s earliest mahogany varieties—primarily Chelan, Tieton, and Santina—enter the market as California volumes decline, allowing Washington growers to supply early-summer domestic and export channels during a transitional supply period.

Weighted average free-on-board (FOB) prices from 2021–2025 indicate that early-season cherries received an average of approximately $2.67 per lb, compared to $2.20 per lb for mid-season and $2.23 per lb for late-season shipments (WSTFA 2026). On a per-pound basis, early-season fruit captured an average price premium of roughly 20%–21% relative to mid- and late-season shipments over the five-year period. This premium is consistent with tighter early season supply conditions, first-mover positioning in retail promotion cycles, and strong export demand prior to the expansion of peak Northwest volumes.

Study Objectives

The primary use of this report is in identifying inputs, costs, and production practices considered typical of a well-managed, early-season mahogany sweet cherry orchard.

This publication is designed to enable growers to estimate (1) the costs of equipment, materials, supplies, and labor required to establish and produce an early-season mahogany sweet cherry orchard, including packing costs, and (2) the ranges of price and production at which early-season mahogany sweet cherry production would be a profitable enterprise.

Information Sources

The data used in this study were collected from information shared by a group of experienced early-season mahogany cherry growers in Washington. Their production practices and input requirements form the baseline assumptions that were used to develop the enterprise budget. Additionally, the data represent what these owner-operators anticipate would occur over an orchard’s life, if no unforeseen failures occur. Given that many factors affect production costs, packout, and returns, individual growers can use the Excel Workbook (available at the School of Economic Sciences Crop Enterprise Budgets) to make necessary modifications and estimate their own costs and returns.

Budget Assumptions

1. Early-season mahogany sweet cherries are defined as fruit harvested on or before June 18. large fruit correspond to 9-row and larger, medium fruit ranges from 9.5- to 10.5-row, and small fruit are 11-row and smaller.
2. The area of the total farm operation is 300 acres of mixed conventional tree fruits. Bearing acres include: 225 acres of apples (75% of total area), 48 acres of sweet cherries (16%), and 27 acres of pears (9%).
3. The 48-acre orchard is divided into four equal 12-acre blocks: three planted with mahogany sweet cherries scheduled for early-, mid-, and late-harvest windows, and one planted with yellow sweet cherries. In each block, one acre is allocated to infrastructure (roads, pond, loading area, and buildings), resulting in 11 bearing acres per block (Table 1).
4. The total value of agricultural land (including senior water rights) is $18,000 per acre with annual property taxes of $120 per acre.
5. The irrigation system consists of overhead cooling and under tree drip lines, with two separate sub-main irrigation lines. Water is provided through a public irrigation district.
6. Cultural practices and harvest activities are done by using a combination of manual labor, ladders, and labor-enhancing equipment. The hourly manual labor rate is $21.63/hour, calculated using the minimum wage for 2026 of $17.13/hour, plus H-2A fixed cost of $4.50/hour. For chemical and fertilizer application, irrigation, and frost protection, the labor rate is $22.63/hour, a dollar more than the manual labor rate. These labor rates are assumed the same for all years of production.
7. Free-on-board (FOB) prices are defined as the prices at the packinghouse door. FOB prices vary by fruit size: $3.14/lb for large-size cherries, $2.55/lb for medium-size, $1.52/lb for small-size, and $0.04/lb for cull.
8. Gross production refers to total harvested production (18,000 lb per acre) prior to sorting. Net production reflects marketable production after packout, where packout denotes the removal of cull fruit (22%) arising from preharvest, harvest, or storage losses. The remaining 78% of gross production is allocated across large-, medium-, and small-size categories.
9. Management salary is valued at $700 per acre.
10. Interest on investment represents a 5% opportunity cost to the enterprise. These are forgone earnings for investing money in orchard, equipment, and buildings rather than in an alternative activity. This also represents interest on funds borrowed to finance orchard, equipment, and building purchases.

Table 1. Early season dark mahogany sweet cherry block specifications.

Block Specification	Description
Architecture	2-leader non-formal V
In-Row Spacing	6 feet
Between-Row Spacing	14 feet
Rootstock	G-12
Block Size	12 acres
Productive Block Size	11 acres
Life of Planting	25 years
Tree Density	519 trees per acre

Summary of Study Results

The estimated annual cost and returns for a 12-acre block of early-season mahogany sweet cherries in Washington are shown in Table 2. Production costs are classified into variable costs and fixed costs. Variable costs comprise orchard operations, harvest activities, materials, maintenance and repairs, and packing costs. Fixed costs are incurred whether or not sweet cherries are produced. These costs will generally be calculated for the whole farm enterprise and allocated across each unit of production. The fixed costs include depreciation on capital, interest, taxes, insurance, management, and amortized establishment costs. Management is treated as a fixed cost rather than a variable cost because, like land, management has been committed to the production cycle of the crop.

Table 2. Cost and returns per acre of establishing, producing, and packing early-season mahogany sweet cherries in a 12-acre orchard block.

Return or Cost	Description or Activity	Year 1	Year 2	Year 3	Year 4	Year 5	Years 6 to 20 (Full Production, Annual Average)
Net production	Estimated production (lb/acre)a, large	0.00	0.00	0.00	520.00	1,820.00	2,340.00
Net production	Estimated production (lb/acre)a, medium	0.00	0.00	0.00	1,400.00	4,900.00	6,300.00
Net production	Estimated production (lb/acre)a, small	0.00	0.00	0.00	1,200.00	4,200.00	5,400.00
Culls	Estimated culls (lb/acre)a	0.00	0.00	0.00	880.00	3,080.00	3,960.00
Price	Estimated FOB price ($/lb)b, large	0.00	0.00	0.00	3.14	3.14	3.14
Price	Estimated FOB price ($/lb)b, medium	0.00	0.00	0.00	2.55	2.55	2.55
Price	Estimated FOB price ($/lb)b, small	0.00	0.00	0.00	1.52	1.52	1.52
Price	Estimated FOB price ($/lb)b, cull	0.00	0.00	0.00	0.04	0.04	0.04
Return	TOTAL RETURNS ($/acre)	0.00	0.00	0.00	7,062.00	24,717.00	31,779.00
Variable cost	Soil preparation	2,811	0	0	0	0	0
Variable cost	Trees (including labor)	7,507	0	0	0	0	0
Variable cost	Pruning & trainingc	324	541	887	1,233	1,255	1,255
Variable cost	Thinningc	0	0	0	0	0	0
Variable cost	Chemicalsd,e	651	1,021	1,564	1,797	1,867	1,867
Variable cost	Fertilizerd,e	183	253	323	411	411	411
Variable cost	Irrigation water & electric charge	275	275	275	275	275	275
Variable cost	Irrigation labore	226	226	226	226	226	226
Variable cost	Reflective cover laborf	0	0	0	0	0	0
Variable cost	Netting laborf	0	0	0	0	0	0
Variable cost	Beehives	0	0	0	195	195	195
Variable cost	General farm laborg	100	100	100	100	100	100
Variable cost	Picking laborh	0	0	0	1,200	3,780	4,320
Variable cost	Other labor (checkers, tractor drivers, supervisors)h	0	0	0	600	2,100	2,700
Variable cost	Hauling sweet cherriesh	0	0	0	200	700	900
Variable cost	Warehouse packing charges	0	0	0	3,400	11,900	15,300
Variable cost	Maintenance & repair	250	250	250	285	285	285
Variable cost	Fuel & lube	180	135	140	160	180	180
Variable cost	Overhead (5% of variable costs)i	625	140	188	504	1,164	1,401
Variable cost	Interest (5% of variable costs)j	657	147	198	529	1,222	1,103
Sum of all variable costs	Total variable costs	13,790	3,088	4,151	11,116	25,660	30,518
Return	Returns over variable costs	-13,790	-3,088	-4,151	-4,054	-943	1,261
Fixed cash cost	Miscellaneous supplies	190	190	190	190	190	190
Fixed cash cost	Land & property taxes	120	120	120	120	120	120
Fixed cash cost	Insurance cost (farm and property)	425	425	425	425	425	425
Sum of fixed cash costs	Total fixed cash cost	735	735	735	735	735	735
Sum of all variable costs and fixed cash costs	Total cash costs	14,525	3,823	4,886	11,851	26,395	31,253
Return	Return over cash costs	-14,525	-3,823	-4,886	-4,789	-1,678	526
Depreciation	Irrigation system	128	128	128	128	128	128
Depreciation	Reflective cover	0	0	0	0	0	0
Depreciation	Netting	0	0	0	0	0	0
Depreciation	Machinery, equipment & building	378	378	378	378	378	378
Depreciation	Main line & pump	0	0	0	0	0	0
Depreciation	Pond	0	0	0	0	0	0
Depreciation	Trellis	140	140	140	140	140	140
Depreciation	Wind machine	132	132	132	132	132	132
Interest	Irrigation system	96	96	96	96	96	96
Interest	Reflective cover	0	0	0	0	0	0
Interest	Netting	0	0	0	0	0	0
Interest	Landk	900	900	900	900	900	900
Interest	Machinery, equipment & building	121	121	121	121	121	121
Interest	Main line & pump	0	0	0	0	0	0
Interest	Pond	0	0	0	0	0	0
Interest	Trellis	88	88	88	88	88	88
Interest	Wind machine	99	99	99	99	99	99
Interest	Establishment costs (5%)	0	865	1,239	1,684	2,147	0
Other fixed cost	Management cost	700	700	700	700	700	700
Other fixed cost	Amortized establishment costsl	0	0	0	0	0	3,975
Sum of depreciation, interest, and other fixed costs	Total fixed non-cash costs	2,781	3,646	4,020	4,465	4,928	6,756
Return	Return over cash costs and depreciation	-15,303	-4,601	-5,664	-5,567	-2,456	-252
Sum of fixed cash and non-cash costs	Total fixed costs	3,516	4,381	4,755	5,200	5,663	7,491
Sum of all costs	TOTAL PRODUCTION COSTS	17,306	7,470	8,906	16,316	31,323	38,009
Total returns minus total production costs	ESTIMATED NET RETURNS	-17,306	-7,470	-8,906	-9,254	-6,606	-6,230
Establishment cost	Accumulated establishment costs	17,306	24,775	33,681	42,935	49,541	0

^a Estimated net production considers the respective portions of gross production that are classified as large, medium, small, or cull.
^b These are packinghouse door prices. They reflect the return before any expenses are subtracted.
^c Hand labor rate is $21.63/hour.
^d Includes materials and labor.
^e Tractor/machinery labor for chemical application, fertilizer application, and irrigation is $22.63 per hour, including all applicable taxes and benefits.
^f Labor cost to deploy and pull back.
^g General farm labor rate is a lump sum per acre and is applied to miscellaneous/all other labor. Rate includes applicable taxes and benefits.
^h Picking rate = $0.30/lb in Year 4, $0.27/lb in Year 5, and $0.24/lb in Years 6–25. Checkers’ & tractor drivers’ rate = $0.15/lb. Hauling rate = $0.05/lb. (Hauling refers to transportation cost from the orchard to the warehouse. It is assumed that the warehouse will cover additional transportation expenses—if any—when the orchard is located in remote areas.)
ⁱ Captures indirect costs of operations in the orchard that fluctuate with the level of production but are not accounted for by the variable costs already identified. Also captures unforeseeable expenses.
^j Interest expense on full year during establishment years and for three-quarters of a year during full production.
^k Land cost is approximated by using the 5% interest rate multiplied by the land value of $18,000 per acre.
^l Represents the costs incurred during the establishment years (minus revenues during those years) that must be recaptured during the full production years. It is calculated as: accumulated establishment costs in Year 5 amortized at 5% for 20 years.

The study assumed that an early-season mahogany sweet cherry orchard could achieve full production in the sixth year. Based on the above assumptions, at full production (Years 6–25), total returns average $31,779 per acre, derived from estimated production of 2,340 lb large-size cherries (approximately equal to 13% of gross production), 6,300 lb for medium-size (approximately equal to 35%), 5,400 lb for small-size (approximately equal to 30%), and 3,960 lb cull (approximately equal to 22%), with corresponding FOB prices of $3.14/lb (large), $2.55/lb (medium), $1.52/lb (small), and $0.04/lb (cull). Average annual total production costs are approximately $38,009 per acre, including variable, fixed cash, depreciation, amortized establishment, and other opportunity costs. While returns ($31,779 per acre) exceed variable costs ($30,518 per acre) and barely exceed total cash costs ($31,253 per acre) at full production, they do not fully cover total economic costs.

Table 3 presents break-even returns per pound for large, medium, small, and cull cherries under four cost levels—variable, cash, cash plus depreciation, and total economic costs—during full production. For any given cost category, the enterprise breaks even only if the break-even prices for all sizes are achieved simultaneously.

Table 3. Break-even return for different levels of enterprise costs during full production of early-season mahogany sweet cherries.

Levels of Enterprise Costs	Sweet Cherry Size	Proportional Cost by Size ($/acre)	Break-Even Returna by Grade ($ per lb)
Total Variable Costsb	large	$7,056.04	3.02
Total Variable Costsb	medium	$15,427.53	2.45
Total Variable Costsb	small	$7,882.30	1.46
Total Variable Costsb	culls	$152.11	0.04
Total Cash Costsc,d	large	$7,225.98	3.09
Total Cash Costsc,d	medium	$15,799.09	2.51
Total Cash Costsc,d	small	$8,072.14	1.49
Total Cash Costsc,d	culls	$155.78	0.04
Total Cash Costs + Depreciation Costse	large	$7,405.85	3.16
Total Cash Costs + Depreciation Costse	medium	$16,192.36	2.57
Total Cash Costs + Depreciation Costse	small	$8,273.07	1.53
Total Cash Costs + Depreciation Costse	culls	$159.66	0.04
Total Costf,g	large	$8,788.08	3.76
Total Costf,g	medium	$19,214.51	3.05
Total Costf,g	small	$9,817.16	1.82
Total Costf,g	culls	$189.45	0.05

Notes: This table shows break-even returns for different levels of total enterprise cost. For each cost level, there are four break-even returns—one for each sweet cherry size—and they should be viewed as a group that occurs together. The enterprise breaks even only when all four returns are achieved at the same time. The break-even returns are calculated by sharing total costs across cherry sizes based on their contribution to total returns: about 21% for large cherries, 48% for medium, 30% for small, and 1% for Cull. These return shares reflect the assumed mix of cherry sizes produced, which is approximately 13% large, 35% medium, 30% small, and 22% Cull of total production.
^a The break-even return per size is obtained as follows: proportional cost divided by the production of each cherry size.
^b If the return is below this level, sweet cherries are uneconomical to produce.
^c If there are other cash costs on an individual’s orchard, these costs must be identified and included in the cash cost break-even return calculation.
^d The second break-even return allows the producer to stay in business in the short run.
^e The third break-even return allows the producer to stay in business in the long run.
^f Total cost includes interest costs, which consist of both interest on owned capital and actual cash interest payments on borrowed funds.
^g The fourth break-even return is the total cost break-even return. Only when this break-even return is received can the grower recover all out-of-pocket expenses plus opportunity costs.

At the total cost level, break-even returns are $3.76/lb for large, $3.05/lb for medium, $1.82/lb for small, and $0.05/lb for culls, compared to $3.02, $2.45, $1.46, and $0.04 per lb, respectively, at the variable cost level. Table 3 shows that break-even returns differ depending on cherry size because total enterprise costs are allocated across sizes according to their contribution to total returns—approximately 21% for large, 48% for medium, 30% for small, and 1% for cull—and then divided by the corresponding size-specific production. Under the assumed 18,000 lb gross production, small fruit accounts for 5,400 lb (30% of output), so the allocated total cost is spread over a larger volume of pounds, resulting in a lower total cost break-even return ($1.82/lb) compared to large fruit ($3.76/lb), which represents only 2,340 lb (13% of output).

Table 4 reports the baseline assumptions used to compute these break-even levels, including the gross production and size distributions, along with harvest, packing, overhead (5%), and interest (5%) parameters that can be adjusted to evaluate sensitivity in break-even outcomes.

Table 4. Values that can be changed to calculate break-even returns.

Variables	Value
Gross production	18,000
Size distribution: large, % of gross productiona	13%
Size distribution: medium, % of gross productiona	35%
Size distribution: small, % of gross productiona	30%
Size distribution: cull, % of gross productiona	22%
FOB price ($/lb), large	$3.14
FOB price ($/lb), medium	$2.55
FOB price ($/lb), small	$1.52
FOB price ($/lb), cull	$0.04
Picking labor cost ($/lb)	$0.24
Other harvest labor cost ($/lb)b	$0.15
Hauling cost ($/lb)	$0.05
Packing charges ($/lb)	$0.85
Overhead (%)	5%
Interest rate (%)	5%

Notes: These are baseline values. Changing values in Table 4 in the Excel workbook will automatically update the numbers shown in Table 3.
^a Important note: When changing the percentages of size distribution, they must sum up to 100%.
^b Refers to checking, tractor drivers, and supervisors.

Most of the budget values given in Table 2 are based on more comprehensive underlying cost data, which are shown in Tables A1–A4 in Appendix A. Table A1 presents the annual capital requirements for a 12-acre, early-season mahogany sweet cherry block. Table A2 specifies the machinery and building requirements for the 300-acre multi-crop cultivar orchard. Interest costs are listed in Table A3 and depreciation are in Table A4. Interest costs represent required return on investments. They can be actual interest payments on funds borrowed to finance farm operations and physical capital investments, an opportunity cost (a return that would have been received if the investment had been in an alternative activity), or a combination of the two. All interest and amortization costs assume a 5% interest rate. The amortized establishment costs assume a total productive life of 25 years, which includes 5 years of establishment and 20 years of full production. The amortized establishment costs must be recaptured during the full production years in order for an enterprise to be profitable. Depreciation costs are annual, noncash expenses that are calculated over the asset’s useful life. These expenses represent the loss in an asset’s value due to use, age, and obsolescence.

The key results of the early-season mahogany sweet cherry enterprise budget are formed by production-related assumptions established for the study. Production costs and returns for individual owner-operators may differ; thus, the results cannot be generalized to represent the population of cherry operations in Washington State. An interactive Excel Workbook, described below, is provided to enable individual owner-operators to estimate their returns based on the costs of their production.

Excel Workbook

An Excel spreadsheet version of the 2026 enterprise budget (Table 2) as well as associated data underlying the per-acre cost calculations (Appendix A, Tables A5 through A9, for establishment costs, full production costs, calculation of salvage value and depreciation costs, amortization calculator, all production-related data for the early-season mahogany sweet cherry orchard investment) are available at the WSU School of Economic Sciences Extension website.

Owner-operators can modify select values and thus use the Excel Workbook to evaluate their own production costs and returns.

Acknowledgements

The authors acknowledge the information provided by a group of anonymous early-season mahogany sweet cherry orchard and packinghouse owner-operators, pesticide consultants, nursery representatives, financial institutions’ representatives, and WSU Extension educators.

Appendix A

Table A1. Summary of annual capital requirements for a 12-acre, early-season mahogany sweet cherry block^a.

Requirements and Receipts	Year 1	Year 2	Year 3	Year 4	Year 5	Years 6 to 25 (Full Production, Annual Average)
Land (12 acres)	216,000	-	-	-	-	-
Trellis System	38,500	-	-	-	-	-
Reflective Cover	-	-	-	-	-	-
Netting	-	-	-	-	-	-
Irrigation System	42,147	-	-	-	-	-
Main line & Pump	0	-	-	-	-	-
Pond	0	-	-	-	-	-
Wind Machine	-	-	-	43,500	-	-
Operating Expensesb	167,473	49,757	61,451	138,062	298,043	351,483
Total Requirements ($)	464,119	49,757	61,451	181,562	298,043	351,483
Receipts ($)	0	0	0	77,682	271,887	349,569
Net Requirements ($)	464,119	49,757	61,451	103,880	26,156	1,914

^a The full production year is representative of all the remaining years the orchard is in full production (Year 6 to Year 25).
^b Operating expenses is the sum of the total variable costs, miscellaneous supplies, land and property taxes, insurance cost, and management cost.

Table A2. Machinery, equipment, and building requirements for a 300-acre diverse cultivar orchard.

Requirements	Description	Purchase Price ($)a	Number of Units	Total Cost ($)
Machine Shop/Shedb	-	150,000	1	150,000
Tractor-70HP, 4WD	70HP, 4WD	65,000	5	325,000
Tractor-40HP, 4WD	40HP, 4WD	60,000	2	120,000
4-Wheeler	2WD	8,000	3	24,000
Speed Sprayer	-	30,000	5	150,000
Weed Spray Boom & Tank	-	7,000	1	7,000
Mower (Rotary)	7 ft	7,800	1	7,800
Flail Mower	-	12,000	1	12,000
Fork Lift	-	50,000	2	100,000
Bin Trailer	-	11,000	4	44,000
Pickup Truck	Full size	65,000	2	130,000
Ladder	8 ft	120	100	12,000
Platforms	-	60,000	3	180,000
Miscellaneous Equipmentc	-	50,000	1	50,000
Shop Equipmentd	-	20,000	1	20,000
Total Cost	-	-	-	1,331,800

Notes: Machinery, equipment, and building requirements are utilized in growing diverse crops in the 300-acre farm, which include early-season mahogany sweet cherries. The costs of fixed capital are allocated on the entire farm operation.
^a Purchase price corresponds to new machinery, equipment, or building.
^b Includes manager office, restroom, pesticide handling area and storage, dry storage, area for equipment cover, and shop bay for equipment work/repair.
^c Includes mobile portable toilets (2), box blade, straight blade, quick connect loader, mechanical weeder, detachable bucket for loading fertilizer, gopher baiter, soil aerator, utility trailer, and ladder trailers (2).
^d Includes compressor, welder, pressure washer, and miscellaneous tools.

Table A3. Annual interest costs per acre for a 12-acre, early-season mahogany sweet cherry block.

Capital Requirements	Total Purchase Price ($)	Salvage Value ($)a	Number of Acres	Total Interest Cost ($)	Interest Cost Per Acre ($)b
Irrigation Systemc	42,147	0	11	1,054	96
Reflective Coverc	0	0	11	0	0
Nettingc	0	0	11	0	0
Land	216,000	N/A	12	10,800	900
Machinery, Equipment & Buildingd,e	1,331,800	118,180	300	36,250	121
Main Line & Pumpc	0	0	11	0	0
Pondc	0	0	11	0	0
Trellisc	38,500	0	11	963	88
Wind Machinec	43,500	0	11	1,088	99

^a Not applied to land because land is not a depreciable asset.
^b Interest Cost is calculated as: (Total Purchase Price + Salvage Value) ÷ 2 × Interest Rate. For land, the calculation is: Total Purchase Price × Interest Rate, because there is no salvage value for land.
^c The irrigation system, reflective cover, netting, main line and pump, pond, trellis system, and wind machine are used for the direct production of the fruit. Hence, their respective interest costs are divided by the production area (11 acres) to get the interest cost per acre.
^d Total area of the farm operation is 300 acres, and the machinery, equipment, and building are used in the entire, diverse cultivar farm. Thus, the corresponding interest costs are divided by the total area (300 acres) to derive the interest cost per acre.
^e See Appendix A, Table A7, in the Excel Workbook for a detailed calculation of the salvage value of the machinery, equipment, and building.

Table A4. Annual depreciation costs per acre for a 12-acre, early-season mahogany sweet cherry block.

Capital Requirements	Total Purchase Price ($)	Number of Acres	Total Value per Acre ($)	Years of Useful Life	Depreciation Cost per Acre ($/yr)a
Irrigation System	42,147	11	3,832	30	128
Reflective Cover	0	11	0	10	0
Netting	0	11	0	20	0
Main Line & Pump	0	11	0	30	0
Pond	0	11	0	50	0
Trellis	38,500	11	3,500	25	140
Wind Machine	43,500	11	3,955	30	132
Machinery, Equipment & Buildingb	-	-	-	-	378

^a The depreciation cost is calculated as straight-line depreciation: (Total Purchase Price – Salvage Value) ÷ Years of Use.
^b See Appendix A, Table A7, in the Excel Workbook for a detailed calculation of the depreciation cost of the machinery, equipment, and building.

References

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USDA NASS (United States Department of Agriculture National Agricultural Statistics Service). 2025b. 2024 State Agriculture Overview: Washington.

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