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Fraser Fir Enterprise Budget

Prepared by Jeff Owen and Dr. Charles Safley

Download Fraser Fir Enterprise Budget (Excel File)

The Excel worksheets that compile this budget build from basic inputs of equipment, materials, tree inventory, and labor to annual summaries, total cost summaries, and estimates of return. The budget also includes tree price sensitivity analysis and an investment analysis for the basic tree price.

This Excel-based Fraser fir budget spreadsheet was developed from lists of operations, materials, and equipment drawn from previous budgets, re-compiled by extension specialists, and reviewed by growers. Material and equipment costs were updated from pricelists provided by regional suppliers. Dr. Charles Safley developed the spreadsheets from perennial nursery crops budgets he had previously created. The budget as it stands now has been reviewed by several North Carolina Fraser fir growers and extension agents. This review process will continue as we get feedback from growers who use it.

As a compilation, it strives toward an average of practices and recommendations that may not fit any one farm. As a work in progress, more representative operations, equipment, or materials may be identified as time goes on. When using this budget consider it a starting point, in which you can enter your own data to make it more like your own operation.

While this budget shows costs and income associated with one acre, the assumption is that it is part of a larger farm. A one-acre farm could not support full time employees, equipment ownership, or provide a steady stream of income. This budget represents a 40 acre farm that has been in business long enough to acquire the equipment typical of an established operation.

You may find equipment listed that you do not own or presently need. Often, new or small-acreage growers contract-hire those operations for which they have not been able to justify purchase of the equipment. This might include pest management and even harvest practices. They may contract with another grower for hand fertilizing or shearing to avoid maintaining a full-time crew of their own. In these ways, conservative tree growers have often delayed their major investments until the cash flow from the sale of Christmas trees can pay for it. If properly estimated, contract costs should reflect an hourly rate on equipment use.

This budget contains cells that show an answer to calculations from values in other cells. If you enter data over any formulas, a series of errors could be generated through the budget worksheets. The first step you should take is to save this budget under a new name so that any changes you make do not affect the original copy. To change or update values for listed operations, only enter data in the robin’s egg blue cells. If you have significantly different operations, equipment or materials, you can either overwrite existing rows or add new lines. However, once you “go outside the blue” you risk changing more than you plan on if you do not understand the use of Excel formulas. If you are working from a separately named and saved version, you can always refer back to the original version. If you have the skills to navigate through Excel, go for it and learn as you go. Track how changes to material, equipment, or labor influence the bottom line. Make the budget fit your own operation. Use it to analyze important decisions for your business.

If you have problems using this budget or have suggestions for  improving it, please get in touch with either of the authors. You can reach them at the following phone numbers or e-mails:

Jeffrey H. Owen
Area Extension Forestry Specialist, Christmas Tree Production
Extension Forestry, College of Natural Resources
North Carolina State University
Phone: 828.684.3562
Email: jeff_owen@ncsu.edu

and

Dr. Charles Safley
Professor and Extension Economist
Agricultural and Resource Economics
North Carolina State University
Phone: 919.515.4538
Email: charles_safley@ncsu.edu

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Updated June 11, 2010