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Planning for the future and improving capital value through tree removal 
Prepared by: David Anderson 
Rosebank Farm 
October 2014
2014 AMS 40th Anniversary Industry Conference proudly presented by 
Rosebank Farm – Our story 
• We have a lifestyle property, purchased in 2003 for our 
retirement 
• Spent last 10+ years seeking to improve productivity 
• Need to plan for future sale 
• Property improvement project
2014 AMS 40th Anniversary Industry Conference proudly presented by 
An overview of what we purchased 
• Purchased with 2,777 trees (now > 26 years old) 
• Total orchard area 7.2 hectares 
• 7m x 3.5m spacing (closed canopy) 
• Steepish blocks creating significant water wash (soil erosion) 
• Largely krasnozem soil
2014 AMS 40th Anniversary Industry Conference proudly presented by
2014 AMS 40th Anniversary Industry Conference proudly presented by 
Our challenges to date 
• Improve and maintain soil/tree health 
• Design and implement water management plan 
• Ongoing pest management 
• Quality improvement 
• Complete top-working trial 
• Trial different canopy management techniques
2014 AMS 40th Anniversary Industry Conference proudly presented by 
Our results to date 
• Fully paid for drying shed investment through improved NIS 
quality 
• Consistently achieved > 3.5 tonnes per hectare 
0.00 
1.75 
3.50 
5.25 
7.00 
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 
NIS tonnes/ha
2014 AMS 40th Anniversary Industry Conference proudly presented by 
The issues we need to resolve 
• Deteriorating canopy volume (reduced production) 
• Ongoing soil erosion 
• How to maintain productivity in an ageing orchard 
• How best to sell the farm within 10 years
2014 AMS 40th Anniversary Industry Conference proudly presented by 
Our 10 year objectives 
• Maintain/increase productivity 
• Reduce soil erosion 
• Reduce costs 
• Sell farm by 2021
2014 AMS 40th Anniversary Industry Conference proudly presented by 
The steps towards achieving our plan 
• Create cash flow to determine economic viability of tree 
removal 
• Determine ability to cash flow the transition 
• Commence program to remove every other row over 5 year 
period
2014 AMS 40th Anniversary Industry Conference proudly presented by 
Cash flow - income 
• Calculate NIS production by block 
• Estimate kg/tree by block for each year 
• Increment kg/tree by 20% p.a. over 5 years to minimum 80% 
of original yield after each row is removed 
• Assume conservative $/kg NIS price 
• Calculate NIS revenue p.a.
2014 AMS 40th Anniversary Industry Conference proudly presented by 
Cash flow - expenditure 
• Calculate all estimated costs, by category, p.a. 
• Adjust chemical, fuel and oil, and labour costs as program 
proceeds 
• Adjust fertiliser costs (per tree) as canopy volume increases
2014 AMS 40th Anniversary Industry Conference proudly presented by 
Cash flow – outcomes 
• Will vary - need to be conservative 
• Cash flow will deteriorate during the tree removal phase but 
will continually improve as the orchard recovers 
• We have planned for this to take five years for each block
2014 AMS 40th Anniversary Industry Conference proudly presented by 
Our tree removal program 
• S & G Agricultural Contractors (Simon Richens) 
• Apply ethephon at appropriate time to enable early nut drop 
and early harvest completion in selected blocks 
• Book contractor as early as possible after final harvest pickup 
• Second mulch to reduce high incidence of large debris 
• Re-shape inter-rows if necessary 
• Apply kaolin clay product (eg. SurroundTM) - sunburn 
• Plant smothergrass and establish inter-row groundcover
2014 AMS 40th Anniversary Industry Conference proudly presented by 
Mulcher
2014 AMS 40th Anniversary Industry Conference proudly presented by 
Prior to tree removal
2014 AMS 40th Anniversary Industry Conference proudly presented by 
Post tree removal
2014 AMS 40th Anniversary Industry Conference proudly presented by 
Prior to tree removal
2014 AMS 40th Anniversary Industry Conference proudly presented by 
Post tree removal
2014 AMS 40th Anniversary Industry Conference proudly presented by 
What we’ve learnt 
• Be courageous 
• Plan, but be prepared to modify along the way 
• Breakdown and spread mulch prior to next harvest
2014 AMS 40th Anniversary Industry Conference proudly presented by 
The planned outcome by 2021 
• > 1,300 trees 
• > 5 tonnes per hectare 
• Costs reduced by about 35% 
• A great looking and saleable property!
2014 AMS 40th Anniversary Industry Conference proudly presented by 
Any questions? 
We’re happy for you to make contact later: 
David or Ann Anderson 
Rosebank Farm 
Telephone: 02 66882280 
Email: rosebank-farm@bigpond.com
David Anderson - Planning for the future and improving capital value through tree removal

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David Anderson - Planning for the future and improving capital value through tree removal

  • 1. Planning for the future and improving capital value through tree removal Prepared by: David Anderson Rosebank Farm October 2014
  • 2. 2014 AMS 40th Anniversary Industry Conference proudly presented by Rosebank Farm – Our story • We have a lifestyle property, purchased in 2003 for our retirement • Spent last 10+ years seeking to improve productivity • Need to plan for future sale • Property improvement project
  • 3. 2014 AMS 40th Anniversary Industry Conference proudly presented by An overview of what we purchased • Purchased with 2,777 trees (now > 26 years old) • Total orchard area 7.2 hectares • 7m x 3.5m spacing (closed canopy) • Steepish blocks creating significant water wash (soil erosion) • Largely krasnozem soil
  • 4. 2014 AMS 40th Anniversary Industry Conference proudly presented by
  • 5. 2014 AMS 40th Anniversary Industry Conference proudly presented by Our challenges to date • Improve and maintain soil/tree health • Design and implement water management plan • Ongoing pest management • Quality improvement • Complete top-working trial • Trial different canopy management techniques
  • 6. 2014 AMS 40th Anniversary Industry Conference proudly presented by Our results to date • Fully paid for drying shed investment through improved NIS quality • Consistently achieved > 3.5 tonnes per hectare 0.00 1.75 3.50 5.25 7.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 NIS tonnes/ha
  • 7. 2014 AMS 40th Anniversary Industry Conference proudly presented by The issues we need to resolve • Deteriorating canopy volume (reduced production) • Ongoing soil erosion • How to maintain productivity in an ageing orchard • How best to sell the farm within 10 years
  • 8. 2014 AMS 40th Anniversary Industry Conference proudly presented by Our 10 year objectives • Maintain/increase productivity • Reduce soil erosion • Reduce costs • Sell farm by 2021
  • 9. 2014 AMS 40th Anniversary Industry Conference proudly presented by The steps towards achieving our plan • Create cash flow to determine economic viability of tree removal • Determine ability to cash flow the transition • Commence program to remove every other row over 5 year period
  • 10. 2014 AMS 40th Anniversary Industry Conference proudly presented by Cash flow - income • Calculate NIS production by block • Estimate kg/tree by block for each year • Increment kg/tree by 20% p.a. over 5 years to minimum 80% of original yield after each row is removed • Assume conservative $/kg NIS price • Calculate NIS revenue p.a.
  • 11. 2014 AMS 40th Anniversary Industry Conference proudly presented by Cash flow - expenditure • Calculate all estimated costs, by category, p.a. • Adjust chemical, fuel and oil, and labour costs as program proceeds • Adjust fertiliser costs (per tree) as canopy volume increases
  • 12. 2014 AMS 40th Anniversary Industry Conference proudly presented by Cash flow – outcomes • Will vary - need to be conservative • Cash flow will deteriorate during the tree removal phase but will continually improve as the orchard recovers • We have planned for this to take five years for each block
  • 13. 2014 AMS 40th Anniversary Industry Conference proudly presented by Our tree removal program • S & G Agricultural Contractors (Simon Richens) • Apply ethephon at appropriate time to enable early nut drop and early harvest completion in selected blocks • Book contractor as early as possible after final harvest pickup • Second mulch to reduce high incidence of large debris • Re-shape inter-rows if necessary • Apply kaolin clay product (eg. SurroundTM) - sunburn • Plant smothergrass and establish inter-row groundcover
  • 14. 2014 AMS 40th Anniversary Industry Conference proudly presented by Mulcher
  • 15. 2014 AMS 40th Anniversary Industry Conference proudly presented by Prior to tree removal
  • 16. 2014 AMS 40th Anniversary Industry Conference proudly presented by Post tree removal
  • 17. 2014 AMS 40th Anniversary Industry Conference proudly presented by Prior to tree removal
  • 18. 2014 AMS 40th Anniversary Industry Conference proudly presented by Post tree removal
  • 19. 2014 AMS 40th Anniversary Industry Conference proudly presented by What we’ve learnt • Be courageous • Plan, but be prepared to modify along the way • Breakdown and spread mulch prior to next harvest
  • 20. 2014 AMS 40th Anniversary Industry Conference proudly presented by The planned outcome by 2021 • > 1,300 trees • > 5 tonnes per hectare • Costs reduced by about 35% • A great looking and saleable property!
  • 21. 2014 AMS 40th Anniversary Industry Conference proudly presented by Any questions? We’re happy for you to make contact later: David or Ann Anderson Rosebank Farm Telephone: 02 66882280 Email: rosebank-farm@bigpond.com