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Old 06-28-2018, 06:23 PM
 
646 posts, read 422,271 times
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Apple Peach and Cherry.


I understand this can vary but lets assume they are in average to good shape and producing.




I'm trying to evaluate a distressed orchard in Colorado with water rights and a bunch of trees.
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Old 06-28-2018, 08:46 PM
 
Location: North Idaho
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If the trees are distressed, that really knocks down the value. Those water rights are probably worth a packet.

Fruit orchard value would most likely be figured on the dollar amount that the trees produced for market, not on a price per tree.
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Old 06-28-2018, 09:15 PM
 
646 posts, read 422,271 times
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Thanks the trees may be ok -its a Colorado orchard with 8900 of them. It abuts a river and water rights are fine. The owner died and his children have not really been interested. Cheries- apples and peaches.
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Old 06-29-2018, 07:09 AM
 
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Distressed? How long have they been ignored?

Pruning is a big deal with fruit trees to produce. This article explains "thinning". Your yield may be reduced with improper care of tree over time, read here.
https://www.starkbros.com/growing-gu...ng-fruit-trees

Do they have diseases? Fruit trees are risky, there is a lot of loss.

I am giving you one of the gold standards for fruit trees and info, Stark Brothers. Good Luck!


https://www.starkbros.com/growing-gu...or-fruit-trees
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Old 06-29-2018, 10:22 AM
 
646 posts, read 422,271 times
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Thanks they may have only missed this years' pruning. The guide was helpful is there a multiplier for fruit trees? ie if a tree produces $100 worth of applies per year is it worth 5 x that?
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Old 06-29-2018, 10:34 AM
 
Location: Prepperland
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You may learn the price of trees, but know nothing of their value.
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Old 06-29-2018, 10:58 AM
 
Location: East of Seattle since 1992, originally from SF Bay Area
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See if this is at all helpful. I'm in commercial real estate and because we do a lot of specialized industrial properties we have had to use agricultural appraisers at times. You don't have pecans, but it should at least be similar.




https://www.noble.org/globalassets/d...f-ae-08-01.pdf
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Old 06-29-2018, 02:10 PM
 
Location: North Idaho
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This is what I'd offer: the value of the land, the value of the water rights, something ( but not full price ) for the improvements, lIke irrigation equipment and fencing. The trees are just along for the ride. That way you are buying real estate.

Unless the income and expenses are well documented, with profit and loss statements, contracts for the crops from wholesalers, and contracts for labor.. In that case, you can offer multiples of the profits, but that's all, not profits plus land plus trees. That way you are buying a business

Two different ways of figuring value.

There may be similar farmland nearby that has sold recently to give you some comparison.
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Old 06-30-2018, 03:05 PM
 
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Did the orchard have a market outlet? Is there equipment? Is the water rights permanent and not forfeit if not used for 1 year?
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Old 06-30-2018, 04:19 PM
 
Location: NC
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With fruit trees, the age of the trees is important as well.
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