How do I assess pest and shearing work a Christmas tree farm needs each year?
Ask the seller to walk the blocks with you and show how shearing and pest monitoring are done, who does the work and what it costs. Trees that were neglected show it in shape, colour and gaps, and recovery takes seasons.
Begin in the field. Look at the shape and density of trees in each block, discoloured needles, damaged tops and signs of insects or disease. Ask the seller what problems have come up in recent seasons and what was done about them. Compare older blocks with younger ones to see whether the care has been consistent. Ask neighbouring growers or a local advisor what pressures are common in your area, and compare that with what the seller reports.
Then ask about the labour. Shearing is a seasonal job, usually done by hand by a crew, so find out who does it, whether they are family, seasonal workers or contractors, and whether they will come back for you. Ask for the schedule and the records of what was sprayed, when and why.
Turn this into numbers for your plan. Ask for the yearly cost of labour, supplies and equipment for this work, and check that it appears in the financial statements. Project the cash needed before trees are sold, and ask your accountant to review it. If past years look underspent, expect to catch up on the work. Ask what equipment is used for shearing and spraying, who owns it and what it would cost you to replace.
Key takeaways
- Walk every block and compare tree shape, colour and gaps across ages.
- Ask who does the shearing and whether they will work for you.
- Check that yearly labour and supply costs appear in the books.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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