How much is a pecan tree worth? This question comes up often in Oklahoma and Texas, and can arise for several reasons.
For instance, when purchasing a property that has pecan trees growing on it, a buyer may need to allocate the purchase price between the land and improvements (i.e., the pecan trees). Or perhaps a utility company needs to place a value on pecan trees removed to install a utility line. Insurance companies settle claims for damaged trees and must arrive at fair payout figures.
To help fill this information gap, several agricultural consultants at the Noble Research Institute created this pecan valuation fact sheet. It is the intent of this publication to provide methodology that appraisers, tax preparers and other interested parties can use in determining the value of pecan trees.
The fact sheet provides valuation tables for both native trees and improved variety trees. To use these tables to assess a tree, a person only needs to know the number of trees per acre and the average tree diameter. The values in the table were calculated using several assumptions, which are stated in the bottom of the table. In addition, the bottom section of the table explains how to adjust the values based on different management practices.
The fact sheet builds upon previous publications by also providing a formula valuation for more specific tree assessment. With the formula valuation, additional detail is needed about historical production and practices. More specific information will provide for a more accurate estimate of a tree’s value; however, this process takes more time and effort.