Christmas Budget Worksheet by cyg16960

VIEWS: 28 PAGES: 6

More Info
									                                     CHOOSE AND CUT CHRISTMAS TREE ENTERPRISE BUDGET
Production time frame: 9 years                                                                        Tree planted / acre: 1200
Acres in trees: 1                                                                                     Trees sold / acre (75%): 900

                INCOME (3-year average for years 7, 8, 9)                                       Unit      Number Per Year
Sale of trees, choose and cut
 - White Pine                                                                                                                 100
 - Scotch Pine                                                                                                                100
 - Douglas Fir                                                                                                                100
 - Other                                                                                                                        0
Total number trees sold/year not to exceed                                                           300                      300
Total gross revenue
1st YEAR ESTABLISHMENT COSTS (for year 0)
Site preparation costs                                                                     acre                                 1
Trees/acre                                                                                 tree                              1200
Planting (chemicals, machinery, labor)                                                     acre                                 1
Tools (clippers, etc.)                                                                     pieces                               1
Miscellaneous                                                                                                                   1
Total fixed costs (1st yr establishment)
VARIABLE COSTS (3-year average for years 7, 8, 9)
Selection & coloring                                                                       acre                                 1
Harvesting                                                                                 acre                                 1
Advertising                                                                                year                                 1
Insurance                                                                                  farm                                 1
Subtotal variable costs (years 7, 8, 9)
VARIABLE COSTS (yearly average for years 1-9)
Yearly stand maintenance                                                                   acre                                 1
Shearing                                                                                   acre                                 1
Subtotal variable costs (years 1-9)
Total costs
Assumptions for Enterprise Analysis:
1) Area planted was a recently abandoned pasture.
2) The farm is in a suburban area 30 miles from a large city and has good road access.
3) The grower owns the land on which the trees are planted.
4) The grower owns a small tractor or driving mower.
5) Trees are white pines. Spruces and firs will bring higher prices, but costs may differ.
6 ) Each seedling is planted on a 6' x 6' area; total planting area is 3 acres.
7) Stand maintenance includes replacement of lost trees, herbicide, and machinery and labor for mowing 3 times per year.
8) Shearing starts in year 3 and is most time-consuming in years 5-8. The number provided is an average for the 9 years.
9) All costs and revenues were averaged over the 3-year production of trees.
10) Tree revenues occurred in years 7, 8, and 9.
11) All variable costs occur in years 7, 8, and 9, except stand maintenance/labor, which occurs every year.
12) Average tree price is $25 for a 5-foot tree; $30 for 6-ft, & $35 for 7-ft. It is assumed that there are equal numbers of each size.
Cash Flow Analysis
                                                                                                                     Year
                                          0              1              2                3             4                        5
                                                                                                                    $/acre
Income                                    0              0              0                0             0                        0
Costs                              $888.00        $250.00        $250.00          $250.00        $250.00                  $250.00
Net annual returns                -$888.00       -$250.00       -$250.00        -$250.00        -$250.00                 -$250.00
Cumulative net returns   -$888.00   -$1,138.00   -$1,388.00   -$1,638.00   -$1,888.00   -$2,138.00
Net present value                         -638         -227         -216         -206         -196
 PRISE BUDGET
ted / acre: 1200
d / acre (75%): 900

                 Price per Unit ($)        Average $/yr

                                      30         3,000.00
                                      25         2,500.00
                                      35         3,500.00
                                       0             0.00

                                                $9,000.00

                                  200                200
                                 0.24                288
                                  150                150
                                   50                 50
                                  200                200
                                                 $888.00

                                  125                125
                                  250                250
                                   60                 60
                                  300                300
                                                 $735.00

                                  150                150
                                  100                100
                                                 $250.00
                                               $1,873.00




imes per year.
r the 9 years.



numbers of each size.

  Year
                                       6               7           8           9        total
 $/acre
                                    0            9,000.00    9,000.00    9,000.00 27,000.00
                              $250.00             $985.00     $985.00     $985.00   5,343.00
                             -$250.00           $8,015.00   $8,015.00   $8,015.00 $21,657.00
-$2,388.00   $5,627.00 $13,642.00 $21,657.00 $43,314.00
      -187   $5,696.00 $5,425.00 $5,167.00 $14,619.00
Cash Flow Analysis
                                                       Year
                           1      2       3       4             5      6          7
                                                       $/acre
receipts                    0      0       0       0          0         0   9,000.00
costs                     670    250     250     250        250       250       985
net annual returns       -670   -250    -250    -250       -250      -250   8,015.00
cumulative net returns   -670   -920   -1170   -1420      -1670     -1920      6095
Net present value
      8          9         total

9,000.00   9,000.00   27,000.00
    985        985     4,875.00
8,015.00   8,015.00   22,125.00
  14110      22125

								
To top