What should I check before buying a Christmas tree farm?
Check the trees first: how many stand in the field, of what species and at what age, because that is what the farm will sell in coming years. Then look at the planting and shearing record, how sales split between wholesale lots and choose-your-own customers, the seasonal crew and the equipment. Ask for each in writing.
A Christmas tree farm sells a crop that takes years to grow and a few weeks to sell. That shape explains most of what a buyer should look at. The standing trees are the main asset to verify, and they cannot be judged from a listing summary. Walk it, ask for the records behind it and talk to the people who work it.
The trees in the ground
Ask for a count of standing trees by species and by year of planting, and ask who made the count and how. Walk several rows yourself. You want to see whether the trees are even, healthy and close to the age the seller says. A gap of several years in planting means a gap in what can be sold later, so ask the seller to explain it.
Planting and shearing records
Trees need regular shaping and care to reach a saleable form. Ask for the planting plan, the shearing and weed control routines and any losses to weather, pests or disease. Records show whether the farm is run on a plan or from memory. If the seller keeps little on paper, ask how you will learn what the owner knows.
How the trees are sold
Wholesale lots and choose-your-own sales are different businesses on one property. Wholesale depends on buyers and delivery. Choose-your-own depends on traffic, parking, staff and a good season. Ask for the split, who the repeat customers are and what happens to trees that do not sell.
People and equipment
The selling season is short, so the farm leans on seasonal staff and on machines that must start when needed. Ask who returns each year, and read about what happens to temporary foreign workers when you buy a business if the crew includes them. Ask for an equipment list with age and condition.
Related reading
15 pages on the same subject, grouped by topic.
Buying
Due diligence
Financing
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 is inventory
- 03Employment and Social Development CanadaGovernmentHire a temporary worker through the Seasonal Agricultural Worker Program
- 04Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
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