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A Federal Income Tax Primer for
North Carolina Christmas Tree Growers

Appendix

This budget reflects the producer who owns the undeveloped land, manages the business, and who purchases all the other inputs for the enterprise on credit with loans to be repaid from and in proportion to the fraction of the stand sold each harvest year. These budgets are only guidelines. Production systems and costs may vary.

Budget for a One-Acre Fraser Fir Farm, Avery County
and Surrounding Areas of Western North Carolina, 1994.1

Site Preparation
First year | Second year | Third year | Fourth year | Fifth year | Sixth year | Seventh year | Eighth year

Category Units Price ($) Quantity Value ($)
Site Preparation:
Land clearing Acre 750.00 1.00 750.00
Lime, pelletized Ton 105.00 2.00 210.00
0-46-0 Cwt. 11.80 5.00 59.00
33-0-0 Cwt. 11.00 3.00 33.00
Dry fertilizer spread Acre 5.50 1.00 5.50
Rye seed Bu. 8.15 1.00 8.15
Herbicide Acre 22.36 1.00 22.36
Capital cost Dol.
Annual operating capital   0.09 761.61 68.54
Tractor Acre 23.09 1.00 23.09
Machinery Acre 9.91 1.00 9.91
Labor:
Machinery Hr. 6.00 2.12 12.72
Hand Hr. 6.00 4.00 24.00
Total site preparation       $1,226.27

First Year:
Transplants (3-2) Each 0.65 1,900.00 1,235.00
18-46-0 Cwt. 11.50 3.27 37.61
Herbicide Acre 34.36 1.00 34.36
Capital cost
Annual operating capital Dol. 0.09 914.88 82.34
Net accumulated estab. cost Dol. 0.09 1,226.27 110.36
Tractor Acre 9.43 1.00 9.43
Machinery Acre 29.48 1.00 29.48
Equipment Acre 10.08 1.00 10.08
Labor:
Machinery Hr. 6.00 5.01 30.06
Hand Hr. 6.00 63.20 379.20
Total first year expenses       $1,957.92

Second Year:
Transplants (3-2) Each 0.65 285.00 185.25
19-19-19 Cwt. 11.50 3.27 37.61
Herbicide Acre 80.20 1.00 80.20
Capital cost:
Annual operating capital Dol. 0.09 212.14 19.09
Net accumulated estab. cost Dol. 0.09 3,184.19 286.58
Tractor Acre 16.87 1.00 16.87
Machinery Acre 17.82 1.00 19.82
Equipment Acre 9.00 1.00 9.00
Labor:
Machinery Hr. 6.00 5.87 35.22
Hand Hr. 6.00 29.00 174.00
Total second year expenses       $863.64

Third Year:
18-46-0 Cwt. 11.50 6.53 75.10
0-0-50 Cwt. 15.00 2.38 35.70
Insecticide and miticide Acre 26.40 1.00 26.40
Herbicide Acre 80.20 1.00 80.20
Capital cost:
Annual operating capital Dol. 0.09 152.18 13.70
Net accumulated estab. cost Dol. 0.09 4,047.83 364.30
Tractor Acre 20.86 1.00 20.86
Machinery Acre 10.12 1.00 10.12
Equipment Acre11.06 1.00 11.06
Labor:
Machinery Hr. 6.00 5.78 34.68
Hand Hr. 6.00 28.32 169.92
Total third year expenses       $842.04

Fourth Year:
Lime, pelletized Cwt. 5.25 20.00 105.00
46-0-0 Cwt. 13.50 2.38 32.13
0-0-50 Cwt. 15.00 2.38 35.70
Insecticide and miticide Acre 80.00 1.00 80.00
Herbicide Acre 57.20 1.00 57.20
Capital cost:
Annual operating capital Dol. 0.09 217.02 19.53
Net accumulated estab. cost Dol. 0.09 4,889.87 440.09
Tractor Acre 24.85 1.00 24.85
Machinery Acre 12.98 1.00 12.98
Equipment Acre 10.68 1.00 10.68
Labor:
Machinery Hr. 6.00 6.89 41.34
Hand Hr. 6.00 34.32 205.92
Total fourth year expenses       $1,065.42

Fifth Year:
Gypsum, pelletized Cwt. 8.00 10.69 85.52
46-0-0 Cwt. 13.50 2.38 32.13
0-0-50 Cwt. 15.00 2.38 35.70
Insecticide and miticide Acre 61.80 1.00 61.80
Herbicide Acre 80.20 1.00 80.20
Capital cost:
Annual operating capital Dol. 0.09 206.75 18.61
Net accumulated estab. cost Dol. 0.09 5,955.29 535.98
Tractor Acre 24.85 1.00 24.85
Machinery Acre 12.98 1.00 12.98
Equipment Acre 11.06 1.00 11.06
Labor:
Machinery Hr. 6.00 6.89 41.34
Hand Hr. 6.00 37.32 223.92
Total fifth year expenses       $1,164.09
Total estab. and growing costs       $7,119.38
1Budget prepared by Jeff Owen and Ross Young, Extension Agents, and Lenny Rogers, Area Farm Management Agent, North Carolina Cooperative Extension Service.

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Sixth year | Seventh year | Eighth year

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