The cost of mature palm trees is a critical consideration for most homeowners who are budgeting for this important tropical timber product. These massive hardwoods have a steep price elasticity that allows them to respond to market forces and eventually provide good returns. While it is true that the cost of mature palm trees varies from one location to another, there are some general guidelines for estimating cost. This article provides those estimates and their impact on the value of the investment.
The first step is to evaluate the level of competition in the marketplace. The most recent trend is that palm trees are more abundantly grown in other parts of the tropics than in the United States. In addition, the palm species commonly found in the southern U.S. are very susceptible to disease and insects, and therefore their roots may well compete with the healthy ones in any setting. Because they are highly sensitive to disease and insects, their healthy root systems may be easier to cultivate than their diseased counterparts.
In an effort to keep the cost of mature palms as low as possible, many growers have adopted plantation techniques, establishing a series of replanted nursery trees over several years. Because these plots require extensive care, they often cost much more than traditional growth methods. These higher costs reflect a larger-than-normal concentration of trees relative to the area of the landscape.
As a second step, we recommend calculating the cost of mature palm trees according to the number of years they will generally last. We base this calculation on two principal considerations: the first is the typical span of life of these trees, which is usually between five and eight decades; and the second is the average time lost due to disease or insect infestation during this period. Some manufacturers will sell older trees, typically at a discount, as an investment into their company portfolio. This approach has the potential to allow for growth of new plantations based on proven management practices. For instance, some companies that sell sugar cane crops will often selectively harvest certain parts of the plant and grow others in a field that has already been cleared. Such practices reduce the amount of time spent on pest control and afforestation, which can translate directly into lower crop prices.
A third consideration for calculating the cost of mature palm trees is our assessment of the industry value of the crop you are intending to grow. We recommend that you contact an agronomist, an expert in plant propagation, before you begin planning your planting and sales. This person will be able to advise you on many issues, including the likely impact on the environment, the feasibility of local harvest, the probability of future yield increases, the probability of pests wiping out a significant portion of your crop, and so on. You will also want to visit local nurseries before you plant to assess the current and future market prices for the various species you intend to grow. We can't provide you with advice on these matters; you need to do the homework yourself.
In summary: When it comes to calculating the cost of mature palm trees, there are three main factors to consider: seed cost, labor cost, and crop insurance. Seed is the most important factor, obviously, since the cost of planting will be higher than the cost of replanting when the first tree sprouts. Palm trees usually take between three and five years to mature, so if you want to get started cultivating palms as quickly as possible, then we recommend planting them as soon as you can. Labor cost is less important than crop insurance since you can usually negotiate payment terms with insurance companies on a case-by-case basis. Lastly, we recommend that you visit local nurseries to understand more about the process of planting, harvesting, and pricing various species of palms.