Sugarbush lease

[whitetail farms]

a producer near me has a 1200 tap woods that is all tubed, he his getting older and I may be able to talk him into leasing it to me at the right price, he normally make about 300 gallons of the 1200 taps there and there is a few hundred more that could be tapped also,I currently lease 60 taps at the bottom of the bush that he doesn't tap for a dollar a tap because all the tubing was already up and those 60 trees run better than the 200 I have in another woods, the tubing would need a little work but not to much and there's old galvanized tanks already in place, what do you guys think would be a fair price to lease this woods? its only a few miles from my sugarhouse, would a dollar a tap be to much?, I was also thinking maybe 1200 for the whole woods and then I could add on the rest of the taps with no charge, your thought are all appreciated,
Thanks Nick

[spud]

The production seems a little low for 1200 taps. Is this woods on high vacuum? Assuming it's not I think you should be able to make 480-600 gallons under high vac. If the woods is nice and it is close to your home you should try to lock in on this for long term. Most people want everything for nothing and would not even think of paying more then one dollar a tap. If I was you I would offer $2.00 per tap with a 7-10 year lease. Get it before someone else does.

Spud

[mapleack]

If the mainlines at least are laid out and sized well it would indeed be worth upwards $2 per tap if you got a long term lease.

[whitetail farms]

I believe last your he almost made 400 but there is some work to be done on the tubing lot of lines on the ground and sagging he doesn't work on it much just taps it every year to see what he can get, its all on gravity and I think the mains are under sized I think they are 3/4 though there are a few so maybe there okay, there's no power there put I would run a vacuum of a gas engine,i don't think I have to worry to much about someone coming on me yet I know that if I don't lease it he will just keep making syrup in till hes ready to stop then he most likely would let me know he wanted to lease it,this wont be for this season though thinking a little ahead but If I did get it I would really need to upgrade some equipment thanks for all your help guys after this season ill talk to him about it

[Scribner's Mountain Maple]

I say lock it up now. While $2 is fair, maybe even 3 considering you should get 15-25 from each tap. And the investment in the pipe is already there in place. I'd start with$1 per tap for 10 years. Negotiate from there to a place where you both feel good about it. But lock it up now or asap. Even just a contract with a payment date of July.

You'd never think the woods you have your eye on are in jeopardy of someone else coming in, until it happens. The cost of the lease for 10 years is nothing compared to the syrup you will make. At 400 Gal, at 30 per Gal, that is 12K, at $1 per tap, or 1200 per year, 10 years lease is paid for in 1 yr of tapping. Then add high vac, make 600 per yr, and make a profit yr 1. Lock it UP.....

Just this week a local producer came into my back door and offered my neighbor to lease his 275 acres I hoped to lease this summer. In case I wasn't clear, my opinion is to Lock it up tomorrow with a handshake and agreement that you are preparing a contract. Even better, go to the UVM website tonight and find the lease contract they have available and amend for your purpose.

Ben