Christmas Tree Production - Profitability

Profitability

One appeal of Christmas tree farms to growers is that it can be a profitable way to use low quality farmland, though this trend is changing within the industry. Christmas tree farms can turn a profit in as little as six years, and though some overhead in equipment and labor does exist Christmas tree production requires only small amounts of up-front capital. Each tree can cost land owners $5–10 from the time its planted as a seedling until it is harvested as a mature Christmas tree; that cost includes land costs, and costs accumulated through the growing process. In the early 21st century, Christmas tree farmers typically got annual returns of between $600–1,000 per acre of trees planted.

Christmas tree farming has initial costs associated with establishing the farm. Land, if unowned, must be purchased, as does equipment. Crop failures are also not uncommon which can negate years of work. Besides land, and pests, diseases and bad weather tree farmers must contend with costs associated with tractors and other equipment for planting, harvest and cultivation. Fences, storage buildings, worker protection and pesticide regulations also add to the expenses of Christmas tree farms.