What records and inventory details do I need to sell my Christmas tree farm?
To sell a Christmas tree farm, document the standing trees by planting year and species, gather several years of sales records, and explain your choose-and-cut and wholesale customers. List when buyers can see the farm at its best, and decide with your lawyer and accountant what transfers with the land and what is sold as a business.
A Christmas tree farm is unusual to sell. The product takes years to grow, the main sales happen in a few short weeks, and a buyer is paying in part for trees that will not be ready for a long time. Show what is in the ground, who buys it, and how the farm runs.
Document the standing inventory
Map the farm in blocks and note the planting year, species and condition of each. Keep your planting and replanting records, and be honest about gaps where a block failed or was cut early. A buyer will ask whether there is a steady run of trees coming to market or a bulge followed by a drought. A clear map answers that, and it saves hours of walking the rows with questions.
Timing the listing
Buyers may want to see the farm working, but you are also busiest then. Many sellers share the sales records and photographs during the season, then arrange walk-throughs once the rush is over. Talk with your broker or advisor about when to go public. Think about when you can answer questions properly, because a rushed first conversation can leave a poor impression.
Package the customers
Explain how the trees reach buyers. A choose-and-cut lot has repeat families, signs, parking and staff. Wholesale has lots, haulers and standing arrangements. Describe each, with several years of records, and say which relationships are written down and which rest on a handshake. If you plan to introduce the buyer to your regular customers, say so, because that continuity is part of what you are handing over.
What goes with the land
List the land, buildings, equipment, signage, website and brand, and be clear about what is included. Some farms are sold as land with trees, others as a going business, and the paperwork differs. Your lawyer can tell you how to structure it, and your accountant can tell you how the sale will be treated for tax. Decide those questions before you meet buyers.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Canada Revenue AgencyGovernmentSales of Farmland by Individuals
- 02Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
- 03Business Development Bank of CanadaGovernmentAdvice for succession planning - Articles and tools
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