How to estimate property value on a Christmas tree farm?

My wife and I are thinking about buying a Christmas tree farm. Thing is we disagree with the owners on the value of the land containing the trees. Just wondering if anyone has seen this before. If it helps it's in Illinois. We really need a number to work with per acre. Is it comparable to buying wooded land of farm land? Any help is very much appriciated. Thanks.How to estimate property value on a Christmas tree farm?
You are not just purchasing land, but a business.


The land is valued in 2 ways





First is the value of the land as if it's raw land. What would a piece of land without the trees be worth. However, is the tree farm zoned for a business? If so, what is this worth? I would ask to see how many trees he sold last year or even over the past 3 years. Buy the business for what he actually did in sales, not what he planned to do.








The second value are the trees themselves. What are the value of the trees. HOWEVER, this is NOT the retail value. This is the wholesale value.





Are there any buildings or equipment onsite that come with the property. If so, add a value to them.





I would recommend an appraisal on the property. You can't depend on tax value, etc.How to estimate property value on a Christmas tree farm?
Make sure you are getting the tree rights. I saw one place for sale that was growing Christmas trees but the land was being leased to the tree company. Also if you are going to opporate a tree farm make sure you understand how to grow, harvest and sell them, it isn't as easy as it looks.
You could value this two ways.





One, you could value it as timber land, the value of the standing timber plus the acreage. Since timber values greatly by area, you will have to do some research there.





Or you could value it as a commercial entity. I would want to see a profit and loss statement if there is a debate on value. or get an APOD, annual property operating data. Apods are more used for rental units, but I could see where one might be useful here.
My partner just appraised a tree farm June in Washington State. He told me that the trees were already sold for 900K and just waiting to be harvested. This is a very complex appraisal and you will need a Certified General appraiser. It would run you at lease a couple thousand to have it appraised. Xmas trees are big business.