Agricultural production implies an expected outcome or yield.  Variability in outcomes from those that are expected poses risks to [a farm’s] ability to achieve financial goals.  Any production related activity or event that is uncertain is a production risk.  The major sources of production risks are weather, pests, diseases, and the interaction of technology with other farm and management characteristics, genetics, machinery efficiency, and the quality of inputs.  Fire, wind, theft, and other casualties are also sources of production risk.(After National Crop Insurance Services’ Crop Insurance and Risk Management Primer, Risk Overview, pages 34 – 35.)

Production risk describes factors that affect the quantity and/or quality of Christmas tree yields.  Early in the growing cycle, production risks often affect the survival of young trees, thereby reducing the total live tree population.  In older trees, production risks may affect the quality of the trees, making them less desirable and therefore less valuable in the market.  The quest for improved yields and reduced yield variability has been the major driver of improvements in technology and production practices over the years. 

 

The production risks associated with growing Christmas trees are substantial compared to other industries.  For example, too much or too little rain can kill or deform trees, slow maturation, or, in harvest-age trees, significantly reduce their market value.  Cold and heat can have huge impacts on trees throughout the year and especially during late spring and summer.  Diseases can impact tree numbers and formation.  Such uncertainty must be properly understood and managed if a farm is to realize the success required for a viable and on-going operation. 

 

Two articles are presented on the topic of Production Risk:

1. From the National Crop Insurance Services’ Crop Insurance and Risk Management Primer, we provide an article by Dr. Laurence M. Crane entitled Production Risk.

2. From the Alabama Agricultural & Mechanical University’s Small Farmers Research Center, we provide an article entitled Production Risk. 

These articles were selected for their relevance, ease of understanding, and completeness; however, they do not provide an exhaustive discussion of Christmas tree production risk.  Readers desiring additional information about Christmas tree production risk are encouraged to explore the reference links provided below.

 

 

Additional References

  
Library Sources

• National Ag Risk Education Library: http://www.agrisk.umn.edu/;

• The Northeast Center for Risk Management Education: http://www.necrme.org/;

• Recognizing Risks: http://www.wvu.edu/~agexten/farmman2/riskmang/risk.htm.

Articles

• Christmas Tree Production Best Management Practices to Protect Water Quality and the Environment: http://www.soil.ncsu.edu/assist/Christmas/;

• Tree Crops for Marginal Farmland: Christmas Trees With a Financial Analysis: http://www.ext.vt.edu/pubs/forestry/446-605/446-605.html#L3;

• Growing Christmas Trees in North Carolina: http://www.ces.ncsu.edu/nreos/forest/xmas/growing/index.htm;

• Christmas Tree Production and the Environment: http://www.ces.ncsu.edu/fletcher/programs/xmas/environment;

• Christmas trees – Production: http://smallfarms.wsu.edu/crops/christmastreesproduction.htm#F;

• Forestry:  Christmas Tree Farming: http://msucares.com/forestry/special/christmas.html;

• Agroforestry Overview:  Horticulture Systems Guide: http://attra.ncat.org/attra-pub/agroforestry.html

• Christmas Tree: Production/Processing/Marketing: http://www.agmrc.org/forestry/chrtreesmain.html;

• Agriculture Production Risk: http://webspace.aamu.edu/smallfarmers/FACTSHTpdnrisk.pdf;

• Integrated Pest Management in Christmas Tree Production: http://ipmworld.umn.edu/chapters/mccull.htm;

• Introduction to Growing Christmas Trees: http://osuextra.com/pdfs/F-5020web.pdf.

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