Christmas Tree Farm Profit Margin
With the aversion towards artificial trees more and more people are interested to buy christmas trees for their family to enjoy the real flavor of a full grown christmas tree and celebrate the festival.
Christmas tree farm profit margin. A breakdown of the numbers would be appreciated. To learn more about growing high value trees read growing trees for profit available here. Here is a visual breakdown.
How profitable is christmas tree farming. The average price of a tree is around 50. Now we all know this is a seasonal business so you have to hit it hard.
Using these tools is an excellent way for christmas tree producers to develop a deeper understanding of their production costs which is a fundamental step toward managing risk and maximizing profit. So with an acre of land you can generate 10 000 per harvest. In our first year we spent 3 195 on startup equipment i listed above including tent rental and after selling our trees paying our tree farm and giving 10 to the church we had a net profit of 7 555 in 5 weeks.
But according to the penn state cooperative extension s sample douglas fir budget even a single acre of christmas trees can yield a sizable profit in excess of 10 000 when properly managed. Christmas tree farms are a good business from the profit point of view. Typically a christmas tree lot at a half way decent location will sell anywhere from 500 to 1000 trees.
The natural christmas tree market in the uk is worth approximately 384m per annum with 8m trees annually retailing at a current average price of 48 for a six foot tree. Start up costs are low and demand is growing every year. And an acre of land can accommodate 200 ready to harvest christmas trees.
To determine your actual costs utilize a bookkeeping system that is designed for agricultural operations and allocate those costs associated with christmas tree production to that profit center. On the other hand the suggested retail plan selling trees for 50 00 would net 30 00 profit per tree.