A Quick Glance At Investing In Apples

Updated October 2024

Few crops hold as deep a connection to human history and culture as apples. Celebrated for their diversity, health benefits, and sweet flavors, apples have influenced civilizations for millennia. Known by many for his pioneering spirit, American folk hero John Chapman, or "Johnny Appleseed," symbolizes just one chapter in apples' rich story.

Today, apples rank as the most-consumed in the United States and place second only to China in global production. This remarkable prominence in our culture and diets has evolved through thousands of years of adaptation. Beyond their historical and cultural significance, apples represent a dynamic and economically resilient industry with robust market demand and strong growth potential. As consumer interest increasingly shifts toward premium and organic apple varieties, the economic value of apples continues to rise, making the U.S. apple industry a critical player in American agriculture.

Let’s take a look at the apple industry—from the fruit's diversity to modern production practices and economic outlook—and why apple orchards present promising opportunities for farmland investors.

The US Apple Industry: A Key Player in American Agriculture

According to the trade association US Apple, over 26,000 producers operate commercial apple orchards across all 50 states, spanning approximately 382,000 acres and including around 7,000 varieties, though only a select fraction of these are commercially produced and widely marketed. Each year, these producers export 42 million bushels of apples, contributing to a total wholesale market value exceeding $23 billion. Domestically, about two-thirds of apples are consumed as fresh fruit, with the remaining third processed into products such as applesauce, cider, apple butter, and canned goods.

While total production volume has remained relatively stable over the past several decades, the crop's economic value has more than doubled since the early 2000s and continues to rise as consumer preferences increasingly favor fresh fruit. While broader factors like population growth play a role, much of the increase in crop value stems from a shift in the specific apple varieties gaining market popularity.

The rise of industrial agriculture in the U.S. during the mid-20th century narrowed commercial apple production to just a few varieties, such as Red Delicious, Granny Smith, and McIntosh. These varieties, bred mainly for yield, size, and color over flavor, remain central to U.S. production. However, as fresh fruit has become a more popular snack choice, demand is shifting away from these traditional varieties. Younger consumers, in particular, are now driving interest in “premium” varieties favored for their taste, like Gala and Honeycrisp.

Despite some shifts in the top varieties commanding the highest prices and market share, the U.S. domestic apple market remains robust and is poised for further growth. Innovations in breeding and marketing new varieties, such as Honeycrisp, are significantly boosting the crop’s overall value. Domestic production also plays a vital role: imports account for only about 6% of U.S. apple consumption, according to the U.S. Agriculture Marketing Resource Center.

Still, while there has been some churn in the specific varieties that command the biggest market and the best price, the overall domestic apple market in the US has remained extremely strong and projects to get stronger yet. New innovations in breeding and marketing of new varieties – Honeycrisp being perhaps the best example – are driving continued growth in the value of the crop.

Apple Orchards: Ideal Growing Conditions and Production Methods

The popularity and wide distribution of apple farming in the U.S. is largely due to the apple’s adaptability to diverse growing conditions. However, most apple production is concentrated in northern latitudes, where the trees benefit from winter's chill, essential for blossom setting and fruit production each year. Currently, the leading apple-producing states are Washington, New York, and Michigan. Harvest season starts as early as July and extends to November, with the peak typically occurring in October.

Apple trees can grow in various soil types, from gravelly sands to clays, but they thrive best in well-drained soils rich in organic matter. Given their shallow root systems, soils with high organic content provide better structure and water retention, supporting effective water uptake from rainfall or irrigation. Many apple farmers enhance moisture retention by planting grasses or low-growing cover crops between tree rows. Proper water management is critical, as poor drainage can lead to blights like crown rot, reducing yields and impacting profitability.

To optimize productivity, orchard managers often employ grafting—a method that joins a cutting, or "scion," from a desired variety to a mature rootstock. This technique enables orchards to sustain trees at different stages of maturity and productivity, while providing a reliable way to cultivate preferred varieties without growing each tree from seed. These practices collectively support consistent yields and improve the long-term economic viability of apple orchards.

Modern Apple Farming: From Mass Production to Flavor-Driven Breeding and Market Diversity

The 21st century has brought renewed diversity in U.S. apple production, consumption, and breeding research. While much of this shift reflects evolving consumer preferences, new apple varieties now appear almost annually, often backed by major marketing campaigns. For example, the launch of the Cosmic Crisp, developed at Washington State University, gained national attention on NPR and became one of the most heavily marketed apples in history. This significant investment and public interest underscore the momentum and innovation driving the industry today.

Beyond consumer trends, heirloom apple varieties are gaining increased attention among scientists and farmers due to their valuable genetic diversity. As climate change continues to impact agriculture, apple orchards face heightened risks from extreme temperatures and unpredictable weather patterns—challenges that genetic diversity can help mitigate. For instance, apple trees must bloom early in the growing season to produce fruit, making them vulnerable to unseasonable frosts that can damage blossoms and reduce yields. By incorporating genes from apples adapted to warmer climates, breeders could develop varieties that remain dormant during brief warm spells, preserving blooms until conditions stabilize. Additionally, resistance to common diseases, such as crown rot, fire blight, apple scab, and leaf spot, can be enhanced through genes from heirloom or wild apple varieties.

The conservation of apple genetic diversity has become a key priority for scientific and conservation communities globally. The USDA's Agricultural Genetic Resources Preservation Center in Fort Collins, Colorado, is among several “seed vaults” worldwide preserving seeds from a wide range of wild and heirloom apple varieties. Scientists are even revisiting the Tien Shan mountains in search of genetic material not yet collected, driven by the urgency of protecting these resources. Recognizing the importance of this mission, the IUCN has listed Malus sieversii, an ancestor of the domestic apple, as a vulnerable species due to climate change and deforestation within its native range.

Farmers and consumers alike are embracing apples’ extensive diversity through events and marketing focused on heritage varieties. Apple festivals, such as Ithaca, New York's Apple Festival and the Rare Apple Tasting in Santa Cruz, California, highlight the seasonal harvest and variety of apples. Meanwhile, farms and nurseries like Scott Farm in Dummerston, Vermont, and Fedco Trees in Clinton, Maine, are committed to preserving ancient apple diversity through the cultivation of heirloom varieties for local markets.

Apple Orchards: A Compelling Investment Opportunity

As consumer preferences shift toward organic and premium varieties, and as the U.S. apple industry capitalizes on diverse and value-added offerings, apple orchards stand out as a sustainable and likely profitable long-term investment. The industry’s adaptability to evolving market demands, along with innovations in cultivation and marketing, make apple orchards a compelling addition to an investor’s portfolio.

Moreover, with increasing environmental awareness, sustainable practices in apple farming—such as organic cultivation, water management, and soil preservation—position apple orchards not only as an economic asset but also as a contributor to responsible agricultural practices. Technological advancements like precision agriculture, data-driven decision-making, and improved resource management further enhance the sustainability and profitability of apple farming, making it a forward-looking investment. This alignment of profitability with environmental stewardship underscores the unique appeal of apple orchard investments, offering valuable opportunities for those seeking both financial and sustainable growth.