What should I check about an orchard’s tree age and replanting needs before buying?
Ask for a block-by-block map showing each variety, the year it was planted and how it has produced recently. Walk the rows to see which trees are declining, then ask what replanting the seller expects, what it costs and how long new blocks take to bear.
An orchard is a set of blocks at different stages of life, and each stage has a different earning pattern. Young trees cost money before they produce, prime trees carry the business and old trees slowly lose output. Ask the seller to show the planting year and variety for every block, and compare that to the yield records for the same blocks.
Walk the property yourself, ideally with an experienced grower or agronomist. Look for gaps in the rows, weak growth, disease, damaged trunks and poor drainage. Ask whether the varieties still match what buyers want, since a block of trees that grows well may still sell badly.
Replanting is a real budget item. Ask what has been planned, what has already been done and what the seller has put off. Consider the years of reduced income while new trees mature, and ask your accountant how that affects your cash flow and your financing. Check the equipment too, because tractors and sprayers often need replacing on the same timeline as the trees. Finally, ask what the seller does about frost, hail and pests, and how those events have affected past crops, because a stand that looks healthy can still carry a poor record.
Key takeaways
- Get a block map with variety and planting year for every block.
- Walk the rows with someone who knows orchards.
- Plan for the cost and the income gap of replanting.
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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 CanadaGovernmentEquipment valuation: How to do it
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