Quote: You must plan for the things that can change your expected outcome.
Managing Your Risk In High Density Orchards
Kevin R. Winkel
Winkel Orchards
65444 66th
AvenueHartford, MI 49057
Presented at the 41st Annual IDFTA Conference, February 21-25, 1998, Pasco, Washington.
Since planting my first high density orchards in 1984, it has become increasingly apparent that difficulties of management are based on decisions on the time of planting when a "system" is chosen. Finding the correct "pieces of the puzzle," to coin a popular phrase, is very important when it comes to the ease in which a given block of apples can be managed during its lifetime. Unfortunately, there is one element that is not given enough emphasis much of the time, when looking only toward the rewards a grower expects to harvest. That element is "risk." It deserves more attention when deciding how to make a new planting of apples successful.
I am reminded of a history lesson concerning a guy named Christopher Columbus. As I remember the story, he left on his voyage not really knowing where he was going. When he arrived, he did not know where he was, and when he returned he did not know where he had been. And he did it all on somebody else's money. This is not too much different from the individual apple grower who is deciding how to plant his new block of apples. The risk you are willing to take in establishing an orchard can depend largely on how much capital is available and who is at risk when using that capital. If you use all of your reserves in establishing an orchard and base the outcome on how things are supposed to turn out, you can put your entire business at risk, not to mention the people around you such as your family. If you borrow money to do it, the risk is even greater. All of a sudden, the decision on what system to use takes on a new emphasis far greater than just deciding what spacing and support system to use. Management of the high density orchard also becomes risk management, because you must expect the unexpected. You must plan for the things that can change your expected outcome.
This point becomes increasingly important when we try to take ideas from other fruit growing areas and "wholesale" those ideas into our own operations. I listened to a speaker many years ago talk about the tax structure that existed in some European countries that subsidized apple growers to the extent that it could greatly affect their planting systems. Imagine having no income tax taken from the profits of a newly planted orchard for the first 5 years. In years 6 and 7, the income tax rates were phased in until normal rates were achieved around year 8. This alone is a strong argument for the very high density "10-year" orchard we hear so much about. Who would not plant at very high densities to get very early yields and earn tax-free profits? The risk is reduced in this situation because the value of the expected returns was increased by the tax benefits.
In order to manage a high density orchard with high efficiency, "risk" must be included in the equation when getting started. It becomes the initial driving force for making proper decisions.
I started farming in 1984, a few years after graduating from college, getting married, and saving enough money to begin this business venture. Even then, I was severely undercapitalized to bring a good established orchard into the 21st century. As I started replanting orchards, I immediately started increasing densities to take advantage of early yields and make lots of easy money. In 1988, I experienced a hailstorm that dumped 6 inches of hail, from marble size to golf ball size, in about 10 minutes. This occurred in April about 3 weeks before bloom. Due to the tremendous damage done by removing buds and spurs, I harvested 10% of the expected apple crop. Lack of crop was devastating to an undercapitalized business because significant dollars had been spent in high density orchards that were going to pay off at this time. Of course I had read the articles touting the benefits of increasing tree densities, and I especially loved the part that stated tree cost does not matter. A few years later, weather conditions were conducive for a widespread fire blight epidemic which resulted in 6 acres of high density orchards being removed due to high mortality. A couple years after that, a midseason hailstorm resulted in all of the Red Delicious being sold for juice, and the Fuji, Gala, and Jonagold being sold for sauce.
I point out these events, which are only some of the stories I could tell, to emphasize a very important point about managing high density orchards. It is much easier to manage a high density orchard when it is somebody else's money.
I grow approximately 100 acres of apples along with 20 acres of tart cherries in Michigan near the eastern shore of Lake Michigan. My labor force consists of 2 full-time employees along with 30 seasonal employees for harvest. Most of the apple orchards are planted at densities between 500 and 900 trees per acre (1235 to 2223 trees/ha) on M.9 rootstock. The training system consists of an 8 to 9 foot (2.4 to 2.7 m) tall central leader tree, with a permanent whorl of branches at the base and renewable branches continuing up the rest of the tree. Each tree is tied to an individual stake for support. Tying down of branches with twine or rubber bands is kept to a minimum, but a certain amount is necessary depending on the scion variety. Pruning is kept to a minimum, especially in the first years of the planting in order to promote early fruiting.
The major management emphasis is placed on cropping and all horticultural practices related to it. This means frost control, pollination, selecting for precocity, thinning, proper pruning (or lack of)
, proper nutrition, and any other horticultural practice that enhances annual and heavy cropping. It is much easier to manage tree growth when a good crop is present.There is nothing extraordinary about this system of growing apples, except that it is successful. The attention given to cropping has made this system very efficient. One very big mistake made by many "growers" is believing they have only minimal control over annual cropping. The fact is you have almost total control if you are willing to accept it. Of course, it is much easier to blame "Mother Nature" for your lack of crop than it is to blame yourself. Granted, the hailstorm example used earlier eliminated the crop in that year, but most risk factors that I have experienced involve other things such as tree loss (i.e., fire blight), fruit quality problems (i.e., midseason hailstorms), and poor markets. There is no easier or more efficient way to manage a high density apple orchard than by cropping annually. It eliminates the "bailout" procedures that become necessary when an orchard gets out of control vegetatively. These procedures can become very costly, not only in terms of money, but also in terms of thinking time. The most successful high density manager will be the one who can balance growth and fruiting the best. Ultimately this is the key to an efficient high density orchard.
I have grown tens of thousands of my own nursery trees to reduce the risk involved in establishing a new planting. This has been a very rewarding venture, but I still buy some trees from other nurseries depending on the situation. Settling on a density around 700 trees per acre (1730 trees/ha) with reasonable or even minimal establishment cost has also been a rewarding venture, not only in terms of the net profit made, but also in growing a successful business by managing "risk." It has allowed me to stare adversity in the eyeand win. Maybe that is the ultimate goal.