How to Start a Profitable Tree Farm Business

The tree farm is nowadays a much popular farming business across the globe. If you own a few acres of land, you can start a tree farm as a business.  It has twin benefits of being an eco-friendly effort apart from reaping profits. Moreover, if you plant high-value trees you can earn profits more than your expectations.  Traditional tree farming meant a forest owned by private individuals where huge trees are grown and managed for timber production.

However, the concept of tree farms has changed in recent years. You can start a tree farm for quick returns. For this, you have to get rid of growing trees that take long years to grow and give returns on harvest and instead, focus on niche trees that grow faster and start giving you profits much earlier.

10 Step Guide to Start a Profitable Tree Farm Business

Now, let us discuss the factors you need to consider before starting a tree farm. They are:

1. Getting the land ready

Your decision to start a tree farm should at first be followed by preparing your land for planting. Use a good tractor and clean your land properly.

2. Choice of Trees

The choice of planting the proper types of trees is extremely critical to make a successful tree farm business. Check out the different kinds of trees that you plant on your tree farm.

  • Easy Growing trees

You have to choose trees that grow fast, have low maintenance costs and can be harvested easily. In short, go for native trees that grow easily in your area.

  • Fast Growing Trees

Choose trees that grow fast. These trees can give you return while growing up through spas, cones, boughs, fruits, sap, etc.

  • High-Value Trees

There are many trees that produce many usable items while growing. These usable items include craft fibers, decorative wood, food, live plants or ornaments. These items provide you with a continuous and sustainable income.

The high-value products from trees in a tree farm are:

  • Craft Fibre

The parts of a tree-like bark, splint or shoots that can be woven are known as craft fibers. They are used to weave baskets and many other things.  One example is the Black Ash tree, also known as the basket tree. Willow shoots also have high demand.

  • Decorative Wood

Colored wood, figured wood or burls are examples of decorative wood that have high demand in arts, crafts, instrument making, etc. The price of decorative wood is increasing every year, so also the demand.

  • Fruits and Nuts

There are many trees that bear fruits and nuts while growing. These have a high demand. Examples are Chestnut, Walnut, etc.

  • Woody Ornamentals

These are trees and shrubs used by florists in their bouquet. They grow back after cutting. Popular examples are corkscrew willow, lilac, and forsythia.

3. Profitable Trees to Grow that Can Fetch High Returns

With the new concept of the fast-growing tree farm, you need not wait for decades to harvest a tree for profit. Instead, you can grow trees that are in much demand and sell them to private persons like homeowners, landscapers or hobbyists.

Here are the names of some profitable trees for the quick profit of your tree farm.

  • Christmas Trees

With the fall in the sale of artificial Christmas Trees, growing real Christmas Trees is a really profitable venture. An acre of land can hold 1800 Christmas trees. You can also sell branches or wreaths from the tree.

  • Instant Shade Trees

These trees grow faster and give a deep shade within two years of planting. They have a well-developed root system and thus can be planted easily. You can grow them in pots and sell them to the landscapers or homeowners who prefer these kinds of trees for the instant shade they provide. Red Maple and American Elm are examples of such trees.

  • Hybrid Chestnut

These fruit trees grow easily in vast areas of the US and produce 2000-3000 pounds of nuts per acre.  These fruits blend the good qualities of US and Chinese chestnuts. Another advantage is the high price of the timber on the maturity of this tree.

  • Black Walnut

This tree gives fruits while growing. Along with it, you can cut the strands and sell them. The black walnut gives a very high priced timber but takes at least 30 years for harvesting. However, this tree in your tree farm will start giving you profits much earlier.

  • Willow

Willow trees grow fast and easily. The shoots of this tree now have high demands in craft fiber and fiber arts. So, you can grow willow trees in your tree farm and get hundreds of marketable shoots from each tree every year.

  • Japanese Maple

There are many varieties of this tree in small as well as large sizes. You can easily grow them in pots and sell them. This beautiful tree has a great demand among landscapers as well as homeowners.

  • Bonsai Trees

These are tiny trees that have great demand worldwide. These trees need a very small area and generate a high rate of profit. So it can be a good addition to your tree farm. But you have to get some knowledge about bonsai and have some patience. This has a great demand as it takes very little space and does not require land.

  • Thornless Locust

The latest varieties of locust trees are thornless and they grow easily. So you can grow them in your tree farm and sell them to landscapers as these kinds of trees are used in control of erosion and restoration of lands. Moreover, it attains the growth of 25-30 feet in just 6 years. So, it has a high demand.

  • Flowering Dogwood

These trees produce lovely flowers in spring and colorful leaves in fall. So it can be a good item in your tree farm as the landscapers prefer these trees very much.  It also produces sweet red berries. The tree is disease resistant as well as deer resistant.

  • Heritage Fruit Trees

Recently, there has been a new interest in older varieties of fruits, especially apples. You can grow these trees for fruits and sell them. Or sell the dwarf varieties to the homeowners.

4. Planting Seeds

After deciding on the type of trees for your farm, buy good seeds and deploy professional persons for planting them as they know the distance between plants very well. Before that, try to use a tree auger to make holes in the land.

5. Looking After the Trees

As the owner of the tree farm, you have to be very careful in the nurturing of plants. You have to water them regularly, prune them as and when needed, apply mulch and fertilizers.

6. Proper System of Irrigation

The success of your tree farm depends on the system of irrigation, as you can’t water the plants in a tree farm manually. Wetlands attract pests, so you have to have a proper pest control system too.

7. Nursery for Immediate Profit

If you want to earn quick profits from your tree farm, you should set up a nursery at your plot of land. Star growing trees from good quality seeds, within a year or two, you will be able to sell them to the landscapers or homeowners.

8. Variety of Trees

There is a myth that you are supposed to grow only one or two varieties of trees on a tree farm. But actually, you can grow various types of trees on your farm. You can have a plot for timber yielding trees. You can grow trees that bear fruits like the chestnut or walnut. You can even have a vineyard or grow pumpkins.  Don’t get limited to one kind of long-term profit.

9. Complete the Necessary Legal Formalities

Many countries have their system of certification of tree farms. In the US it is the American Tree Farm Systems or ATFS.  The certification of ATFS is helpful in the case of the marketing of goods. The local forest office will also help you get the certification of ATFS.  You will also have to know the tax structure of the Tree Farm.

The moment you sell something, you are liable to tax. Having orchards and selling fruits need a specific license and regular inspection.

Buy liability insurance so that you are protected from any unforeseen calamities.

10. Publicity and Marketing

Once your tree farm is green with trees, make it your showcase. You can add some sitting space and make arrangements for the visit of people at your farm. Their visit will not only rejuvenate them but also publicize your tree farm and its products. You can also use social network platforms like facebook, twitter, and Instagram for publicity and marketing.

There is a huge prospect of profits on a tree farm. The cost depends on the size of your plot, the scale of operation and the kinds of trees you select for your tree farm. To sum up, your involvement and right planning can make you a rich tree farmer.