Unexpected tree loss happens. Whether it involves flooding of a field by a broken pipe, an inattentive driver, a natural disaster or some other circumstance, tree loss can occur within an operating orchard. A common question is how to value trees that have been damaged or lost due to various circumstances.

Tree loss occurs for various reasons. There are tools to help estimate the tree’s value to assist in fair compensation.

Valuing trees is not as straight forward as it may seem. Many would assume that to replace a tree, the expenses are limited to the removal, clean-up and replanting of the tree. Although this is true, this does not represent the full investment of that tree. To fully account for the loss, applied operational expenses and lost yield must be considered.  These values for yield and operational expenses, however, must also take into account that a replanted tree will grow into maturity, and produce similar yield as other trees within the orchard. This would need to value the lost yield for the first 3 years of growth as well as the increasing yields until maturity. This calculation is not so straight forward.

Thankfully, there is a tool to help estimate tree loss. A “Tree and Vine Loss Calculator” has been developed by the University of California Agriculture Resource and Economics group at UC Davis. This simple spreadsheet application provides the ability to enter in specific orchard details to determine the value of the tree(s) lost. It considers the operational expenses applied prior to the tree loss, as well as the replanting expenses and yield loss until the new tree begins to crop.

Orchard specific characteristics should be entered into the spreadsheet to provide a better estimate. This includes tree removal and replanting expenses, yields and spacing. Operational expenses are based on the cost studies developed by the University. Since the cost studies are regionally developed, the appropriate calculator should be downloaded to account for the orchard location.

This resource provides an un-biased valuation of the trees and should serve as a reasonable starting point for negotiations with parties responsible for the tree loss.

Quicklink: https://coststudies.ucdavis.edu/en/tree-vine-loss/

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