Christmas Tree Farm Profit Margin
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.
Christmas tree farm profit margin. As you can see growing christmas trees on a tree farm can bring much higher profits to growers. On the other hand the suggested retail plan selling trees for 50 00 would net 30 00 profit per tree. Here is a visual breakdown.
A breakdown of the numbers would be appreciated. The average price of a tree is around 50. Christmas tree farms are a good business from the profit point of view.
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. 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.
Now we all know this is a seasonal business so you have to hit it hard. Curtis talley jr is an msu extension farm management educator and james dedecker is an msu extension field crops educator. 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.
15 000 to 20 000 per location. To learn more about growing high value trees read growing trees for profit available here. 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.
How profitable is christmas tree farming. And an acre of land can accommodate 200 ready to harvest christmas trees.
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