As mainstream farming enterprises come under increasing pressure, the forestry tax breaks for Christmas tree growers look more and more attractive.
This unusual crop was the topic for Teagasc forestry development officer Kevin O’Connell, in a recent Environment Edge podcast.
“There is no income tax on the sale of Christmas trees,” Kevin says. “It is liable for URC and PRSI alright, depending on your age”.
“We’re producing about 650,000 Christmas trees per year in Ireland. About 450,000 of them are sold on the home market and the balance of about 200,000 are exported, primarily to the UK, but also some to Europe,” he adds.
“It’s estimated to be worth about €21m to the Irish economy. If you have a good product, you will sell it.”
Growing Christmas trees is an investment, with associated risks, including trespass and damage from rabbits, as well as from deer, goats and other animals.
“A big one would be fungal or insect outbreaks,” Kevin says. Proper, sustained, maintenance is key.
“A big one is theft, believe it or not.” Battery chain saws have facilitated such thievery. “From here on in, security around Christmas tree farms would be high in the priority.”
Non-payment for trees supplied is another risk factor.
“The species selection, the trees that you’ll use, will be dependent on the site that’s available to you. Basically, you’re looking for a good soil type, free draining, but with some retention of moisture.
"You’re marrying the trees with the site, but you’re also trying to get a species of tree that will sell and that you can manage. The main ones that are on the market at the moment would be the Nordmann fir and Noble fir. The Nordmann is a European species from the Caucasus. The Noble fir would be North American."
The old traditional one would be Norway spruce. It’s gone out of favour, because it tends to lose its needles when it goes inside, whereas the Nordmann and the Noble will retain their needles if looked after properly, Kevin explains. However, Norway spruce is still a good choice for a large outdoor Christmas tree.
For growing Christmas trees, exposed sites and frost pockets should be avoided. “Avoid areas where there’s poor air circulation,” Kevin advises (because fungal diseases can develop).
“Ideally, you’re looking at a north-easterly aspect, but you mightn’t have that luxury. Avoid proximity to existing woodlands, particularly conifer woodlands, because they could harbour deer or insects that will migrate to your Christmas trees,” he says.
The Christmas tree plantation should be fenced off to protect the growing trees from animal damage.
Soil is fundamentally important. “Because they’re conifers, you’re looking at a pH range of 5ft to about 6.5ft, he says. Soils with too much calcium are not suitable. “Avoid wet ground. Trees do not like wet feet.”
While the soil needs to be reasonably fertile, with P and K and trace elements, very fertile soil is not suitable, because it would create a burst of growth in the tree and encourage rank growth of weeds.
“You’re trying to produce a compact tree, as opposed to one with an extended leader,” Kevin says.
For root development, a phosphate-based fertiliser is applied. “You’re looking for bud production on the tree. You’re looking for colour, to bring out the strongest colour on the year of sale. Most of that would be brought on by a foliar nitrogen,” he explains.
But too much nitrogen will result in an unwanted spurt of growth. While trees are growing, you would undertake foliar analysis to assess nutrient needs.
“In general terms, you’re looking at from seven to 10 years of a rotation. You’re looking to get a tree that’s two metres plus in height. There are markets of course for smaller trees,” Kevin says.
Typically, about 20% of the dominant trees will mature early, the main body (60%) will be ready in the middle years, and the final, slower-growing 20% will be ready at about nine or 10 years of age.
The provenance of the trees is vitally important. Ideally, Irish grown trees will be used. “They’re more adapted to our environment,” Kevin says. “The provenance will dictate the shape of the tree, the growth rate, the resistance to disease, its colour, its growth habit. What we look for is a two plus one, which would be generally a tree that’s two years in the seedbed and one year in the transplant line, coming from the nursery.”
Spacing is important. “For a two-metre tree, you’re looking to 1.2m by 1.2m spacing. That will give you a stocking of nearly 7,000 trees to the hectare. But bear in mind you will be taking off 10% of that for tracks and roadways, and another 20% of loss. You’re going to get at least 20% failure, not so much that they won’t grow, but they won’t be to the standard that you wish them to be. That will bring you to a stocking rate per hectare of about 5,000 trees,” Kevin says.
Taller trees (over 2m) would require a space of 1.5m by 1.5m, generating about 3,200 trees per hectare.
The base of the tree should be 60% of the height of the tree.
Management includes replacement of saplings that fail, management of the leader shoot to prevent it from bolting (using hormones), pruning the bottom branches of the young tree to facilitate air movement, as well as weed control, shaping the sides of trees and terminal bud picking to thicken the tree. Diseases have to be monitored and managed.
Layout of tracks at the Christmas tree farm or plantation is very important, so the trees can be readily accessed for harvesting pre-Christmas. “You want a clean loading area. Buyers are fussy. They don’t want dirty trees,” Kevin says. “You have a short window for cutting, for netting and transporting your trees.”
Expect 50% of the trees planted to be premium quality, about 25% to be standard grade, 50% poor grade, and 20% not saleable. The premium grade trees would likely retail at €50 to €70, with the standard grade selling for a little less. “The poor grades, you’re down to haggling, whatever you can get.”
Buyers will arrive from Europe the previous summer to mark out premium grade trees, returning to collect them for the Christmas market.
Kevin also had useful tips for householders buying trees. “Generally, what you do is you cut about a centimetre off the butt of the tree when you buy it, stand it in water, and it will absorb an awful lot of water. Keep topping up the water. Keep it away from direct heat and so forth. Give it a couple of good bangs outside on the floor before you bring it in, or the row will start about needles on the carpet.”