I am planning a high-density apple orchard and need a realistic idea of the setup cost per acre, the major expenses, and how many years before it pays back. Please give ranges, not exact figures.
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High-density apple is capital intensive up front but pays back faster than old orchards because of early and high yield. The big cost heads per acre are: large number of clonal plants (the single biggest cost given 1,000+ plants per acre), trellis and support structure, drip and fertigation, anti-hail netting (often essential in hail-prone belts and a major cost), land preparation and pit work, and fencing. These together make the establishment cost per acre several times that of a traditional orchard, so the total runs into a substantial sum that varies widely by altitude, plant source and whether you add hail netting. Returns: HD apple often starts bearing in year 3 to 4 and reaches good yield by year 5 to 7, with payback commonly in the range of about 6 to 8 years if prices hold and there is no major hail or disease loss. Subsidies under horticulture missions can cover part of plants, trellis, drip and anti-hail nets, so check your state scheme. Always build a buffer for hail and price swings, and confirm current local input and plant costs before finalising a budget.
Hail netting is expensive but it saved my crop the year a bad hailstorm hit. In our area I treat it as essential, not optional.
The horticulture subsidy covered part of my drip and trellis. Apply before you set up, the paperwork takes time. Payback for me looks like around 7 years.
Do not skimp on the plants. I bought a cheap unknown lot the first time and many were not true to type or weak. The second block from a proper nursery performed far better and was worth the extra cost.
Budget for a few years of low income while the trees build up. The cash starts properly from around the fifth year, so keep some reserve or an intercrop for the early years.