How Much Money Does a Christmas Tree Farm Make (2023 Averages)

Christmas tree farming is a seasonal business that involves growing and selling Christmas trees for use during the holiday season. The industry has been growing steadily in recent years due to the increasing demand for natural Christmas trees. If you want to start selling these holiday trees, let me give you an overview of how much money you can make from this type of farming in 2023.

In 2023, the average revenue potential for a Christmas tree farm is $80,000–$120,000 per year, with an annual profit potential of $76,000–$114,000 per year. The start-up costs can range from $22,000 to $90,000, and this includes costs for land, seedlings, equipment, labor, and other expenses.

These overhead costs may be less if you have a smaller farm. However, these may also drive lower sales volumes. Let's see how farm size, tree variety, and farm location affect the amount of money you can make from Christmas tree farming.

Knowing the average earnings of a Christmas tree farm can be a key piece of information as you embark on starting your own profitable farm from scratch.

The Profitability of Christmas Tree Farms In 2023

In 2023, the average revenue potential for a Christmas tree farm is $80,000 - $120,000 per year, with a profit potential of $76,000–$114,000 per year.

Assuming an average of 1,000–1,500 trees sold per year at an average price of $80 per tree, the total revenue would be $80,000–$120,000 per year.

If you're clueless about how many Christmas trees you can plant per acre, here's an article to help you be enlightened.

Assuming a profit margin of 95%, the actual revenue would be $76,000–$114,000 per year.

You can see a more detailed breakdown of Christmas tree farm profit per acre in this article, as well as how you can calculate the profit potential of your farm.

The tables below show an estimated breakdown of initial costs and ongoing costs when founding a Christmas tree farm.

Initial costs of a Christmas tree farm

Initial Costs	Cost Range
Land purchase or lease	$10,000 - $50,000
Seedlings	$2,000 - $10,000
Equipment (tractors, chainsaws, etc.)	$5,000 - $20,000
Labor costs for planting and maintenance	$5,000 - $10,000
Total initial costs	$22,000 - $90,000

Land purchase or lease is a major cost to consider

First, you might want to find a location that has good soil, access to water, and is suitable for growing Christmas trees.

If you choose to purchase land, you will need to consider the cost of the land itself, as well as any associated costs such as closing costs, property taxes, and maintenance expenses.

Alternatively, you may choose to lease land for your Christmas tree farm. Leasing can be a more affordable option, as it allows you to use the land without the upfront costs associated with purchasing.

However, leasing also has its own costs, such as annual lease payments and restrictions on how you can use the land.

The cost of seedlings is another major expense

Seedlings are young trees that are typically planted in the ground to grow into mature Christmas trees over several years.

The cost of a seedling of a popular Christmas tree species like the Fraser fir can range from $5 to $10 per seedling, while a seedling of a less popular species like the white pine may cost around $2 to $4 per seedling.

Similarly, larger seedlings may cost more than smaller ones, as they have had more time to grow and develop.

You also need to factor in the cost of equipment

You'll need a variety of equipment to maintain your Christmas tree farm. Some of the equipment you'll need might include:

• Tractors and mowers: You'll need tractors and mowers to keep the fields clear and to maintain the soil.

• Irrigation systems: Depending on the climate and location of your farm, you may need an irrigation system to ensure that your trees receive enough water.

• Pruning equipment: Pruning is an important part of maintaining healthy trees, so you'll need pruning equipment such as shears, loppers, and saws.

• Harvesting equipment: When it's time to harvest your trees, you'll need equipment such as chainsaws, tree balers, and transportation vehicles.

• Safety equipment: Farming can be dangerous, so you need to have safety equipment such as hard hats, gloves, and safety glasses.

You need to pay your laborers

Planting and maintaining a Christmas tree farm requires a lot of labor, which can be expensive. You'll need to hire workers to plant seedlings, prune trees, and harvest the trees when they're ready.

You'll also need to factor in the cost of any benefits you offer your employees.

Ongoing costs of a Christmas tree farm

Ongoing Costs	Cost Range
Irrigation/Fertilization	$2,000 - $5,000
Pest control	$1,000 - $3,000
Labor costs for maintenance	$5,000 - $10,000
Total ongoing costs	$8,000 - $18,000

The cost of irrigation/fertilization ranges from $2,000 to $5,000 per year

Depending on the climate and soil conditions of the farm, irrigation may be necessary to provide consistent moisture to the trees.

Some common irrigation systems used in Christmas tree farming include drip irrigation and overhead sprinklers.

Fertilization is also important for the growth and health of Christmas trees. Fertilizers can help to provide essential nutrients to the trees, which can improve their growth and overall health.

Some common types of fertilizer used in Christmas tree farming include nitrogen, phosphorus, and potassium.

The cost of pest control can range from $1,000 to $3,000 per year

Christmas trees, like any other plant, can be susceptible to pests and diseases. Some common pests that can infest Christmas trees include aphids, spider mites, and adelgids.

These pests can cause damage to the needles and branches of the tree, and if left untreated, can even kill the tree.

In addition to pests, Christmas trees can also be vulnerable to diseases such as root rot and needle cast.

These diseases can cause the needles to turn brown and fall off prematurely, which can make the tree look unsightly and reduce its overall lifespan.

To prevent pests and diseases from damaging your Christmas tree, perhaps invest in effective pest control measures. An effective pest control plan is one of the important requirements when starting a Christmas tree farm.

This may include using insecticides or fungicides, as well as regularly inspecting the tree for signs of infestation or disease.

The cost of labor can range from $5,000 to $10,000 per year

Some of the tasks involved in maintaining a Christmas tree farm include planting new trees, pruning existing trees, fertilizing the soil, and controlling pests and diseases.

Farmers need to stay up-to-date on the latest techniques for maintaining and harvesting their trees. This includes using environmentally friendly practices to minimize the use of pesticides and fertilizers, as well as implementing sustainable harvesting methods to ensure the long-term health of the farm.

For a more detailed analysis of all the costs involved in starting a Christmas tree farm, you might want to read this article.

Factors Affecting Christmas Tree Farm Revenue

Here are some of the key factors that can affect the revenue of a Christmas tree farm:

The size of the farm can impact the revenue

Size of Christmas Tree Farm	Estimated Annual Profit
Small (1-5 acres)	$10,000 - $30,000
Medium (6-20 acres)	$30,000 - $100,000
Large (21+ acres)	$100,000+

A larger farm can produce more trees, which means that it can sell more trees and generate more revenue. However, a larger farm also requires more resources, such as land, labor, and equipment, which can increase the cost of production.

Additionally, they may face more competition from other Christmas tree farms, which can make it more difficult to sell all of its trees.

On the other hand, a smaller farm may have fewer resources but may also face less competition and may be able to charge higher prices for its trees.

To find out just the right size of Christmas tree farm that can produce enough trees and is easy to maintain, read this article.

Location is another important factor that determines revenue

Location	Estimated Profit
Oregon, USA (known for Christmas tree farming)	$50,000
Arizona, USA (hot, dry climate)	$5,000
New York City, USA (high population density)	$75,000
Rural area in Iowa, USA (low population density)	$10,000

Trees grown in cooler climates tend to have denser foliage and a more vibrant color, which can make them more attractive to customers.

Additionally, farms located near urban areas can benefit from higher demand and higher prices due to the convenience factor.

Oregon, USA is known for Christmas tree farming, which can bring profits of up to $50,000. This is likely due to the high demand for Christmas trees during the holiday season, which can lead to increased sales and revenue.

Arizona, USA, on the other hand, has a hot and dry climate. This may lower the profit due to the fact that the climate may not be conducive to certain types of businesses or industries.

Meanwhile, New York City has a high population density. This translates to more potential customers and therefore increased sales and revenue. Iowa, on the other hand, has a low population density, which can drive down sales.

The variety of trees grown on the farm can also impact revenue

Some varieties of Christmas trees are more popular than others and therefore can command higher prices. The table below shows some of the most common varieties of Christmas trees and how much money they can make per acre:

Christmas Tree Species	Estimated Profit per Acre
Fraser Fir	$10,000 - $15,000
Douglas Fir	$6,000 - $8,000
Balsam Fir	$5,000 - $7,000
Colorado Blue Spruce	$4,000 - $6,000
White Pine	$3,000 - $5,000

Fraser Fir is a popular tree variety due to its attractive appearance and long-lasting needles. Other popular varieties include the Douglas Fir, Balsam Fir, and Scotch Pine.