Christmas Treem Farm --- Need Help

[kwolfe]

Fun is the object here. I am not pursuing this for financial gain. I would like to provide a way to raise my children right and try to provide the community with a friendly service and found memories. I don't mind the labor portion either. I work at a desk most of my day , so any chance to get out into nature I take.

Mossroad,
I have looked into a local supplier of tree farm supplies. I would definitely go the route of planting saplings. If you buy in bulk, they are fairly inexpensive. Yes, land prices hurt. My wife still buys one lottery ticket twicw a week.

 

[Champy]

But then you need to show a profit so the IRS won't take your shorts.

I am in the same process only slightly ahead of you. Starting a tree farm on 34 acres, and planting our first 600 seedlings in the next week. Talk to your local State forester for soil tests and other guidance. You can even get subsidized and receive planting assistance to reforest open land (w/hardwoods though). Also, to meet the "you must attempt to make a profit" IRS requirement stuff (Hobby Farms), I am leasing out the unplanted cropland for soybeans / corn production. I then properly claim the lease on my taxes as income for the Tree Farm, hence no waiting 7 years and dealing with IRS audits with issues around having no income. I have farm income every year, but offset it with proper expenses, and use my CPA to document a long term harvest crop plan.

 

[pappy19]

Very good idea. Also, some growers sell the younger, less symetrical trees to landscapers. Just make sure they replace the soil with a good plug.

 

[Gatorboy]

Don't forget the cost of putting up a 10' deer fence all around -- unless you don't mind the deer eating up most of your trees.

 

[XmasTreeGrower]

Here is the best "primer" I have found:

Growing Christmas Trees in North Carolina

It will walk you through the process start to finish, and give you some ideas of the economics involved, and a tax guide.

I will second what everyone else has said; lots of work, and long years to even come close to a profit. We are on our ninth year now since initial planting, and are just now at break even.

Please don't think about paying those kinds of prices for land without doing thorough soil testing, and having you county agent look up your soil survey. Good drainage is critical. Just because it was old pasture doesn't mean much. Such lands are often severly compacted.

Have fun, but be prepared for years of committment, and hard work!

Here is a pic attached of one field of our 8,000 trees we have growing currently:

Thanks
Bill

 

[LoneCowboy]

As a forester for the Idaho Dept. of Lands, I did an ecnomic study of Christmas trees for private landowners. Bottom line is you'll get at least 7 years of write-offs before you make a dime. That part is good. Then you'll get about 5 years of tree selling, and you can write off your expenses, and that's good too. But then you need to show a profit so the IRS won't take your shorts. Plus aside from the initial planting costs , trimming costs, fertilizer and watering costs, once you harvest, you'll have to indivudally remove the cut stump and replace the hole with good soil. Yes, some of the larger growers make money, but a small grower is just having fun, sort of.

yeppers
You need to be running a real business. The general rule is the IRS expects profits in 2 out of every 5 years. (although you could make a good case for the first years of growing, and running a real business)
But without real profits, they'll go back and disallow all your deductions
This not what you want.