Tree Relocation and Mill

jkyoachim · #1 10/25/13, 07:30 AM

Hi All, I currently work full-time, from home as a project manager and have a small cow-calf operation. I'd like to start farming "full-time" and generate additional income from another source.

I'd like to build a farmstead in the next few years so my thought was to start a tree removal business. I can take trees that someone wants removed and either transplant them on my farm or someone else's or I can cut the trees down and use them for fence posts, lumber, mulch, etc. I can either use the byproducts on my farm or sell them. To buy the equipment I need outright would be pretty expensive ($3-5k for a small tree spade, $3-5k for tree shear, $15-20k for a skidsteer, $20-30k for a big tree spade, $3-5k for a portable sawmill, $5k for gooseneck flatbed, and the list goes on). But I could start out with a chainsaw mill rig and rent a skidsteer and spade or shear. I'm usually not afraid of spending money to make money but I'm becoming much more debt averse as I get older.

I'm in southcentral/eastern Nebraska so there's not a ton of trees but there's always someone trying to get a few more tillable acres or someone who let their pasture go and it's now full of cedars/locusts. There's no short supply of pasture clearing people out there but it seems like most of them don't even bother to use trees for anything. Just shove them into a draw.

I like the idea because it makes something out of nothing since most other removal businesses would have pushed the trees in a pile and left them or burned them. Not to mention the added value of being able to use most of the products myself. So I realize value without having to market/sell anything. I have access to a very good grant writer and thought about trying to get at least one piece of equipment through a grant.

I'm not real well-versed in trees or wood but I'd like to be. And I feel like this is a worthwhile opportunity that is worth the effort. Even if the "business" didn't go as planned, I would still have the knowledge and hopefully some paid off equipment to use on my own endeavors.

Thoughts?

John_Canada · #2 10/25/13, 08:59 AM

A guy that left a tree removal service bought my Dodge Ram when he started his own service. He quickly built up the remaining equipment and threw a location on about an acre property where he piles up mulch for sale and firewood. During the spring and summer he lowballs on cutting trees down if he keeps the wood (usually around $300-500 when others are charging $1500) and stockpiles the wood. Then come fall he goes around town placing really cheap signs made with OSB board and black paint selling firewood delivered. This guy QUICKLY bootstrapped all the equipment and staff he needed. Also sells the mulch delivered for like $!00 a dumptruck full. Super business to be in if you can take the work.

Darren · #3 10/25/13, 09:19 AM

Pushing trees into a draw is a lot faster than transplanting or cutting and hauling. Will your customers allow you the extra time?

jkyoachim · #4 10/25/13, 09:38 AM

Thank you both for the replies!
Darren - You bring up a good point, transplanting would definitely not be a quick process. I would have to make sure I priced it low enough and made sure they were comfortable with an extended time frame. I think cutting and hauling would be pretty quick. But again, I think I would price it low enough to compensate. Although, I need to see what people are currently charging for those services and estimate how long it will take so I can get an idea of how much I would net per hr. I hope to hire 1-2 people to handle the more menial tasks once I get up and running. They could also help me around the farm if things slowed down in the tree/lumber/firewood business.

Any more thoughts? I would love to hear more potential pros and cons!

**clovis** · #5 10/30/13, 08:19 PM

That sounds like a substantial investment for the equipment.

Is there enough work in your area to support it?

TnAndy · #6 11/05/13, 01:32 PM

It could be area dependent, but here, I seriously doubt anyone would pay you to dig up a tree that could be transplanted. They would simply cut it down, or push it over, or bushhog it off, and burn it. I know of no such service around here, and there is probably a good economic reason for that. IF there isn't one in your area, same thing....economics don't work. Most of those locust and cedar trees are low quality stuff that nobody is going to want transplanted if you did dig it up.

That means your plan hinges on being able to DO something with the tree after you dig it up. My thought is if you want to get in the nursery business, get in the nursery business and don't count on free trees to be worth anything. Grow good quality trees that people want in their yards.

Now, the LARGE tree removal business ( tree cutting ) from residences is a whole different ball game. You probably can make money there by charging for the removable, then re-selling the wood either as firewood or lumber off a sawmill. Problem there is you're likely going to need some serious insurance ( both liability and workman's comp ), and a bucket truck, and a chipper + dump truck. Large investment in equipment.

A portable band mill ( Woodmizer/etc ) is a good way to set up an alternative income for you, plus supply you with a good source of cheap lumber for use around your own place. I'd personally cut out the tree spade money, the Bobcat ( though you will need a farm tractor with good front end loader ), and spend more like 12- 20k on a good bandmill. Woodmizer did their own financing back in 1991 when I bought mine, and allowed me to get a mill onsite quick and start making money with it. Don't know if they still do that or not. There are many GOOD used ones out there in the 10k range ( Look on Sawmill exchange dot com for example )

Chainsaw mills are 'ok' for small projects, where you have a LOT more time than money, or you need some specialized LONG timbers, or the log is extremely valuable (like a big walnut log), and you want it for hobby purposes. Been there, done one. Not something you're gonna make much money with. Same with the next step up...a low end band mill. Real light farm duty or hobby work. You don't have to buy a full blown band mill with hydraulics and a Cat diesel, but you do want to step up to a trailer mounted unit with a decent sized gas engine and electric motors for carriage drive, head up/dw, that type of thing. Stuff that will let you remove slabs and lumber while the saw does the sawing. Mine is a LT-40, manual mill ( no hydro ) and I can make decent money custom sawing for others on site, and even better money sawing for my own construction uses.

I think you need to NOT try to spread yourself over too many different areas, and not have the capital, time or help to do a decent job of income in any one. Pick one...go that route. Assuming it works out good, you can add to it later.

Lookin4GoodLife · #7 11/12/13, 12:07 AM

One concern would be liability...... you have to cover yourself if someone pays you to transplant trees and they die or you cut a tree and drop it on someone's house. But I'm sure you're already aware of that aspect.

Hey, if you've got a good grant-writer, you've got about 3 years left to get all the goody you can out of the federal government. If it's got "green" or "tree" somewhere in the title, you're probably a ringer for some startup cash.

Doh.... just saw that Andy already mentioned the outlay for liability insurance.