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Evaluating your Options for Growing Patented, Proprietary Varieties

Evaluating your Options for Growing Patented, Proprietary Varieties. December 6, 2000 Washington State Hort Association David Marshall. Bottom Line Question. How much more money will this new variety have to return to me in order to JUSTIFY additional royalty costs?. Planning is Needed.

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Evaluating your Options for Growing Patented, Proprietary Varieties

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  1. Evaluating your Options for Growing Patented, Proprietary Varieties December 6, 2000 Washington State Hort Association David Marshall

  2. Bottom Line Question How much more money will this new variety have to return to me in order to JUSTIFY additional royalty costs?

  3. Planning is Needed • Sharpen the MIND and Sharpen the PENCIL

  4. Supply Control Systems

  5. Supply Control Systems

  6. Supply Control Systems

  7. Supply Control Systems

  8. Assumptions • 10 Acre plot – 20 year life • Land Cost = $3000 per acre. • $210 per acre “rent” at 7% • Variety ‘X’ on M9 root • System: 4-wire Vertical Trellis • Spacing 12’ x 4’ • 907.5 trees per acre • THE ORCHARD WORKS!

  9. Assumptions: Yield Curve

  10. Establishment Costs $5.65 per tree

  11. Operating Expenses

  12. Return Statement: Sales 100 bins • 65% of packs Grade A

  13. Return Statement: Net Returns • 18 packs per bin • 41 lbs per pack • 900 lbs per bin • 18% culls • 65% of packs Grade A

  14. Inflows and Outflows (Base)

  15. Cash Flow (Base Scenario) Internal Rate of Return: 20.0%

  16. Results: Internal Rate of Return Compare the computed IRR with your Required Rate of Return

  17. Results: Internal Rate of Return Compare the computed IRR with your Required Rate of Return

  18. Results: Internal Rate of Return Compare the computed IRR with your Required Rate of Return

  19. Results: Net Return per Bin

  20. Required Rate of Return = 15%

  21. Required Rate of Return = 15%

  22. Required Rate of Return = 15%

  23. Required Rate of Return = 20%

  24. Contact Information David Marshall 408 North First Street Yakima, WA 98901 509-453-4851 dwmarshall@agrimgt.com FOR MORE INFO... Copies of this material are available in the back. This Power Point presentation can be downloaded at: http://www.agrimgt.com/newsletters.htm

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