How do I tell which blocks of a Christmas tree farm will be ready to cut next season?
Ask for the planting records by block, then walk each one and sample trees for height, shape and health. Compare what you see with the seller’s harvest plan, and ask how many trees were lost along the way and why.
A Christmas tree farm has no inventory list in a warehouse. Its stock is in the rows, so begin with a map. Ask for the planting records by block: the species, the year planted and the number of trees. Ask what has been done since, such as shearing, fertilizing, weed control and replanting, and how often.
Then walk the blocks yourself. Sample trees across each one rather than only those near the road. Look at height, fullness, colour and any signs of disease or pests. Count gaps where trees died, because planted numbers rarely match what survived. Ask the seller to mark which blocks they expect to cut next season and compare that to what you see.
Ask about the customers too. Does the farm sell wholesale, retail or to lots, and does that match the volume that will be ready? A good block with no buyer is still a problem. Finally, ask the seller for the sales history by season, and ask your accountant how the standing crop shows up in the financial statements. A seller who keeps a block-by-block diary is giving you the most reliable evidence on offer, so ask whether one exists.
Key takeaways
- Get a map of planting records by block, species and year.
- Sample trees across every block and count the gaps.
- Match the expected cut to actual customers and sales.
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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?
- 03Business Development Bank of CanadaGovernmentWhat is inventory
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