I’ve had a lot of questions lately regarding pecan tree valuation following hurricane Helene so I want to provide the following information for those who may find it useful:
Based on our 2024 pecan enterprise budget, establishment cost for a commercial pecan tree, including tree cost, fertilization, irrigation operation, chemicals, labor, etc. is $54.47 per tree. Care of the tree for years 2-10 and the nut crop from years 5-10 comes to a total of $394.41 per tree. The nut loss from re-planting is estimated over a period of 10 years, assuming trees begin bearing in year 5. Generally, average production in year 10 is 70 lbs per tree, thus I estimate nut loss for years 1-10 as follows:
Year 1-4 = 70 lbs/tree loss X4 = 280 lbs
Year 5 = 70 lbs-10 lbs production = 60 lbs
Year 6-7 = 70 lbs -20 lbs production = 50 lbs X2 = 100 lbs
Years 8-9 = 70 lbs – 40 lbs = 30 lbs X2 = 60 lbs
Year 10 = 70 -70 lbs = 0 lbs
Thus total nut production loss over a 10 year span is 500 lbs/tree. To obtain a value for that we multiply by the average USDA price over the last 5 years of $1.67/in-shell lb:
500 X $1.67 = $835/tree. Thus the total loss of a single pecan tree, including establishment of a new tree, care for the next 10 years to reach mature production, and loss of that production over that time comes to a total of:
Establishment = $54.47
Care Year 2-10 = $394.41
Nut Loss = $835
Total = $1283.88/tree
