Tree Loss Value Calculator
Unexpected tree loss happens. Whether it involves floodingof a field by a broken pipe, an inattentive driver, a natural disaster or someother circumstance, tree loss can occur within an operating orchard. A commonquestion is how to value trees that have been damaged or lost due to variouscircumstances.
Valuing trees is not as straight forward as it may seem.Many would assume that to replace a tree, the expenses are limited to theremoval, clean-up and replanting of the tree. Although this is true, this doesnot represent the full investment of that tree. To fully account for the loss, appliedoperational expenses and lost yield must be considered. These values for yield and operationalexpenses, however, must also take into account that a replanted tree will growinto maturity, and produce similar yield as other trees within the orchard. Thiswould need to value the lost yield for the first 3 years of growth as well asthe increasing yields until maturity. This calculation is not so straightforward.
Thankfully, there is a tool to help estimate tree loss. A “Tree and Vine LossCalculator” has been developed by the University of California Agriculture Resourceand Economics group at UC Davis. This simple spreadsheet application providesthe ability to enter in specific orchard details to determine the value of thetree(s) lost. It considers the operational expenses applied prior to the treeloss, as well as the replanting expenses and yield loss until the new treebegins to crop.
Orchard specific characteristics should be entered into thespreadsheet to provide a better estimate. This includes tree removal andreplanting expenses, yields and spacing. Operational expenses are based on thecost studies developed by the University. Since the cost studies are regionallydeveloped, the appropriate calculator should be downloaded to account for theorchard location.
This resource provides an un-biased valuation of the treesand should serve as a reasonable starting point for negotiations with partiesresponsible for the tree loss.
Quicklink: https://coststudies.ucdavis.edu/en/tree-vine-loss/