Once the supply of prime veneer-grade black walnut increases and more companies incorporate black walnut into their product lines, the prices should again begin to rise at the historical rate of four to five percent above inflation. We project that the prices for these trees will be approximately as follows: - 25 years: $ 1,600 -- $ 2,500 per tree
- 30 years: $ 3,500 -- $ 5,500 per tree
- 35 years: $ 7,500 -- $10,000 per tree
It’s worth noting that these trees do not have to be harvested at a particular time. If the price in one year is not favorable, harvesting can be postponed until it is. In the meantime the trees will continue to grow in size, which makes them even more valuable.
ASSUMPTIONS
Growth Rate: It’s been proven that these genetically improved cultivars have the potential of growing in excess of one inch in diameter per year. Since it’s impossible to achieve maximum potential growth consistently, we estimate that a properly cared for tree on a good site will average .6 inch caliper growth per year for the first 25 years, .5 inch for the next five years and .4 inch for the last five years.
Survival Rate: Even though the trees are healthy and viable, we recommend being conservative on estimating survival rates. We therefore estimate that one acre should yield 110 trees in 25 years; 100 trees in 30 years, and 90 trees in 35 years.
Current Value: The current price range for veneer-grade black walnut is from $3 per board foot to about $15 per board foot. There are occasional sales at higher rates but they are too few to be factored into our estimates of current value.
Future Value: The Governor’s Conference on Indiana Agriculture states that prices for veneer-grade black walnut historically increase between four and five percent per year. For the purposes of our calculations we use 4% per year.
