Determining Pecan Tree Values
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 Foundation created a pecan valuation fact sheet entitled "Assessing 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.
Along with the new fact sheet (NF-AE-08-01), we are in the process of developing an online calculator that is designed to do the arithmetic for you. The calculator will only require that a person enter numbers related to the orchard or grove and the calculator will automatically provide the pecan tree values.
If questions should arise when reviewing the fact sheet or other publications, feel free to call me or another Noble Foundation consultant at (580) 224-6400.