Last updated 2026-08-18
TL;DR
Arkansas has no standalone Christmas tree farm license. A $25 nursery license applies only if you sell live trees or seedlings. You also need a free sales tax permit. Startup: $2,000-$4,000/acre; first harvest in 5-7 years.
Do you need a license for a Christmas tree farm in Arkansas?
Short answer: no. Arkansas does not issue a standalone 'Christmas tree farm license.' The state regulates only one narrow piece: selling live nursery stock. If you plant seedlings and sell live trees, rooted cuttings, or transplants, you need an Arkansas nursery license from the State Plant Board. If you buy pre-cut trees from another grower and only resell them, you may only need a dealer license, and many choose-and-cut operators never need a nursery license at all.
What you do always need before you sell a single tree is a sales and use tax permit from the Arkansas Department of Finance and Administration. That permit is free, you apply online, and it covers your tree sales. Local business licenses depend on your county and city. The honest paper path for a new Christmas tree farm in Arkansas is: nursery license if selling live stock, sales tax permit, county privilege license if required, USDA farm number if you want FSA access. That is the entire state-level licensing stack [1][3][4].
For the full startup sequence, see our Arkansas startup guide, which walks through the first planting season.
What Arkansas state license applies to Christmas tree growers?
The Arkansas State Plant Board, a division of the Arkansas Department of Agriculture, issues two nursery credentials under the Plant Act. A nursery grower license covers people who propagate, grow, or sell nursery stock. A nursery dealer license covers people who buy and resell nursery stock without growing it. Christmas trees are nursery stock under Arkansas Code § 2-16-203, which defines 'nursery stock' to include trees, shrubs, vines, and other perennial plants. So a choose-and-cut farm growing its own Virginia pine or Leyland cypress fits the grower definition [1].
The base license fee in the statute is $25 for a nursery license and $10 for a dealer license [2]. The State Plant Board can adjust those fees by rule, so confirm the current fee schedule before you send a check. Applications are available through the Plant Industries Division. The board also requires each licensed nursery to keep records of where nursery stock came from and where it went. Inspectors can visit the farm. That inspection is not a business approval; it is a pest and disease check. If you sell only cut trees you bought wholesale, you are a dealer. If you plant and sell your own, you are a grower. One license covers a location, not each acre [1][3].
If you're near the border, compare this with Alabama's license stack. Alabama's fee structure is different, but the grower-dealer split is similar.
How much does a Christmas tree farm cost in Arkansas in year one?
For a small choose-and-cut operation, the honest first-year cash budget in Arkansas runs roughly $2,000 to $4,000 per acre. That covers seedlings, site preparation, planting labor, and first-year weed control. It does not include a tractor, tree baler, or building. The National Christmas Tree Association puts the full, multi-year establishment cost at about $10,000 per acre. In its words: 'It costs about $10,000 per acre to establish a Christmas tree plantation.' [7] That higher figure spreads across the rotation, not one calendar year.
Here is the per-acre startup math for an Arkansas farm using 2024 to 2026 seed and labor prices:
| Item | Cost per acre |
|---|---|
| Seedlings (1,000 Virginia pine, 1-year transplants) | $500-$800 |
| Soil test and lime/fertilizer | $100-$200 |
| Site prep (mowing, spraying, subsoiling) | $300-$500 |
| Planting labor | $200-$400 |
| Fencing to exclude deer | $500-$1,000 |
| Total year-one cash | $1,600-$2,900 |
For a 5-acre farm, that is $8,000 to $14,500 before you buy equipment. Used equipment (a 30 horsepower tractor, mower, sprayer, and tree baler) adds $15,000 to $30,000 in Arkansas's used market. A sales tax permit costs nothing. The nursery license, if you need one, is $25. County privilege licenses usually run $25 to $100 a year. No Arkansas state agency charges an inspection fee for a new Christmas tree farm [2][3][7][8].
The cost picture in Alabama is close to this range, but Alabama has its own nursery fee.
How long does it take to grow Christmas trees in Arkansas?
Plan on 5 to 7 years from planting to first meaningful harvest in Arkansas. That range is not a guess. It comes down to species and site. Virginia pine, the workhorse of Arkansas choose-and-cut farms, reaches 6 to 7 feet in about 5 years on good Piedmont or Coastal Plain soils. Eastern white pine, a slower favorite in the Ozarks, takes 7 to 8 years. Leyland cypress and Arizona cypress can hit marketable size in 4 to 5 years in south Arkansas but have less cold tolerance in the northern counties [8].
You will not have a harvestable tree in year one or two. The license application and sales tax permit take days or weeks, not months, but the biological clock is fixed. This is why most Arkansas Christmas tree farmers start with a small 3 to 5 acre block, plant in staggered rows, and sell pre-cut trees from other growers during the early years. That early cash flow is not a loophole; it is standard practice. You still need a sales tax permit for those pre-cut sales, and if you call yourself a nursery dealer, you need the $10 dealer license [2].
What paper do you file before you plant?
If you are a first-time Arkansas grower, file these things in this order.
1. Soil test through the University of Arkansas System Division of Agriculture. The little plastic bag costs less than $20 and tells you if your pH is too low for conifers. Skip this and you may lose 30 percent of your seedlings. 2. Nursery license application, if you will sell live trees. Print the form from the Plant Industries Division. Attach the correct fee. The board does not offer expedited processing; allow two to four weeks [3]. 3. Sales tax permit from DFA. This one is online, free, and usually issued within one business day. You will need your Social Security number or EIN and a physical address for the farm [4]. 4. Business name and entity filing, if you form an LLC. The Arkansas Secretary of State charges $45 for an LLC filing, but a sole proprietorship costs nothing at the state level [9]. 5. USDA farm number from your county FSA office. It is free, takes about 30 minutes, and unlocks conservation cost-share and loan eligibility. Bring a deed or lease and a government ID [5].
What does the Arkansas State Plant Board actually enforce?
The board's authority is narrower than people think. It does not approve your business plan, set your tree prices, or inspect your tractor. Under the Plant Act, an inspector checks nursery stock for insects, plant diseases, and noxious weeds. If the inspector finds a quarantine pest, the board can stop sale and require treatment or destruction. That is the enforcement power [1][3].
For a new choose-and-cut farm, the practical effect is simple: buy seedlings from a licensed Arkansas nursery or an out-of-state nursery with a valid phytosanitary certificate. Keep the invoice. If the board asks where your seedlings came from, you show the invoice. Many new growers get tripped up by buying cheap seedlings from an unlicensed seller on a roadside. That plant material can carry root disease into your field. The $25 license is cheap compared with replanting a failed acre [2].
Do you need a sales tax permit for a choose-and-cut farm?
Yes. The Arkansas Department of Finance and Administration says, 'Every person making retail sales of tangible personal property in Arkansas must obtain a Sales and Use Tax Permit.' [4] Christmas trees, whether cut or live, are tangible personal property. The permit is free. You can apply online through the Arkansas Taxpayer Access Point, called ATAP. You need a permit before you make your first taxable sale.
Arkansas state sales tax is 6.5 percent. Your county and city add local sales taxes, so the combined rate on a $70 tree in many Arkansas towns runs 8 to 10 percent. You collect it at the point of sale and remit it on the schedule DFA assigns, usually monthly or quarterly for a small seasonal farm. Some choose-and-cut farms treat the tree sale as retail and charge tax. A few try to call it an agricultural product, but Arkansas has no broad farm exemption for Christmas tree sales. Charge the tax. The permit costs nothing, and not having it carries penalties plus interest [4].
California's sales tax paperwork is heavier; see our California license guide for contrast.
County and city business licenses: what to ask
Arkansas does not require a statewide business license. Your county or city might. Many Arkansas counties issue a yearly privilege license for any business operating inside the county, including a temporary choose-and-cut lot. The fee is usually $25 to $75. Some cities add another $15 to $50. A few rural counties have no privilege license at all. You have to ask the county clerk and the city clerk's office where your farm is located.
Do not confuse a privilege license with zoning approval. Before you plant, call your county planning or land use office and ask one question: Is this parcel zoned for agricultural use? If the answer is yes, a Christmas tree farm is typically a permitted agricultural use in Arkansas, but home rule cities can overlay restrictions. If the parcel is zoned residential, a commercial choose-and-cut operation may need a special use permit. That process can take 60 to 90 days and cost $100 to $500, so ask before you plant, not the week before Thanksgiving [1][3].
Do you need a USDA farm number in Arkansas?
No, a farm number is not a license and not required to plant or sell trees. You need one only if you want to use USDA programs. That is a big 'only,' though. A farm number from the Farm Service Agency makes you eligible for conservation cost-share, low-interest operating loans, crop insurance, and disaster assistance after a drought or ice storm. All of those can matter for a young tree crop with a 5 to 7 year wait [5].
The process is free and low-paper. Go to your county FSA office. Bring a deed, lease, or other proof of control of the land, plus a photo ID. The staff will assign a farm number and record your operation on form AD-2047. There is no acreage minimum for Christmas trees. A 2 acre choose-and-cut block qualifies just like a 200 acre row crop farm [5].
Property tax: agricultural land and Christmas trees in Arkansas
Actively managing Christmas trees for commercial sale can qualify your land for agricultural use value in Arkansas. That matters because use value is usually far below market value, which cuts your county property tax. Arkansas Code § 26-26-407 sets the framework: land devoted to commercial agriculture receives a use-value assessment rather than a highest-and-best-use market assessment [6].
Christmas tree land is not automatically classified as agricultural. The county assessor looks at what you actually do: planted, maintained, harvested, and marketed. A 10 acre parcel with 500 scattered pine trees and no management plan may not qualify. A 5 acre block with rows, soil tests, and sales records usually does. File the agricultural assessment application with your county assessor by the deadline, often in the spring. Keep receipts for seedlings, fertilizer, and equipment. The assessor may require a site visit. This is a local decision, so ask that county office for the exact form and deadline before you assume the lower rate [6].
Common startup mistakes that cost Arkansas growers money
Three mistakes show up every year in Arkansas, and each one is avoidable.
Planting the wrong species for the site. Virginia pine tolerates poor, acidic soil better than most conifers, but it hates wet feet. Eastern white pine needs good drainage and cooler nights. If you plant Leyland cypress on a north-facing Ozark slope below 10 degrees Fahrenheit, you may lose a whole block in one winter. Match species to the county.
Skipping irrigation in the first two years. Arkansas summers are hot and sometimes dry. A seedling with no water in August is dead by October. A drip line or a 500 gallon water tank on a trailer costs less than $1,000 and saves thousands of seedlings.
Underpricing trees. The statewide retail range for a choose-and-cut tree in Arkansas is $50 to $120 depending on species and height. New growers often price at $40 because they feel guilty. A healthy 7 foot Virginia pine at $70 is a fair Arkansas price, not a premium.
You do not need a market study to avoid these. You need a soil test, a water plan, and a price sheet [8].
Where to find current fees and forms (without guessing)
State fees and processing times change. The $25 nursery license fee in statute is the base, but the State Plant Board publishes a current fee schedule. Start there: Arkansas Department of Agriculture, Plant Industries Division, Nursery and Floriculture. For the sales tax permit, use DFA's ATAP portal. For a farm number, call your county FSA office. For species and planting, the University of Arkansas System Division of Agriculture runs county extension offices with free publications and soil testing.
After you file the state paper, the practical step is building the first-year operations calendar. ChooseAndCutPath publishes a $149 Shear-Year + Choose-and-Cut Kit that bundles Arkansas-specific checklists for the license, tax, planting, and first harvest window. It is a working document, not a legal filing service. You can start at /start. Regardless of which path you choose, confirm every fee, deadline, and local rule with the agency that enforces it. No webpage, including this one, replaces a phone call to the State Plant Board or your county assessor [3][4][5][8].
If you grow in a neighboring state, the Alabama renewal guide shows how annual renewal differs in practice.
Frequently asked questions
Do you need a license for a Christmas tree farm in Arkansas?
Arkansas has no standalone Christmas tree farm license. You need an Arkansas State Plant Board nursery license only if you sell live nursery stock, such as seedlings, transplants, or rooted cuttings. The license fee starts at $25 for growers and $10 for dealers. A free sales tax permit from DFA is required for any retail tree sale, cut or live [1][2][4].
How much does a Christmas tree farm cost in Arkansas?
First-year cash costs run about $2,000 to $4,000 per acre for seedlings, site prep, planting labor, and weed control. A 5-acre startup commonly spends $8,000 to $14,500 before equipment. Used equipment adds $15,000 to $30,000. Full multi-year establishment can reach $10,000 per acre over the rotation [7][8].
How long does a Christmas tree farm take in Arkansas?
Expect 5 to 7 years from planting to first harvest. Virginia pine can reach 6 to 7 feet in about 5 years on good sites. Eastern white pine takes 7 to 8 years. Leyland cypress may reach marketable size in 4 to 5 years in south Arkansas but is less cold hardy farther north [8].
Can I sell pre-cut Christmas trees without a nursery license in Arkansas?
Yes, if you only resell pre-cut trees that you did not grow or root into soil, you do not need a nursery grower license. You may need a $10 nursery dealer license from the State Plant Board. You always need a free sales tax permit from DFA for any retail sale of tangible personal property [1][2][4].
How do I renew the Arkansas nursery license?
The nursery license is annual. The State Plant Board typically sends a renewal notice to your mailing address. You return the form with the correct fee before the expiration date. The fee schedule can change by rule. If you stop selling nursery stock, notify the board so you are not billed for an inactive license [2][3].
Is crop insurance available for Christmas trees in Arkansas?
Yes, through the USDA Risk Management Agency's Nursery crop insurance pilot program. A farm number from the county FSA office is required first. Coverage is for nursery stock, including Christmas trees, against weather and certain perils. It is not automatic and requires a sales inventory by deadline. Contact a crop insurance agent who handles nursery policies [5].
Do I need a pesticide license to spray Christmas trees in Arkansas?
If you apply restricted-use pesticides on your own farm, you need a private applicator license from the Arkansas State Plant Board. General-use pesticides do not require a license for your own property. If you hire a commercial spray company, that company must hold a commercial applicator license. The private license requires passing an exam and a small fee [3].
What is the Arkansas sales tax rate on Christmas trees?
The state rate is 6.5 percent. Local city and county sales taxes add to that, so the combined rate at many Arkansas choose-and-cut farms is 8 to 10 percent. You collect tax at the point of sale and remit to DFA on your assigned schedule, usually monthly or quarterly for a seasonal farm [4].
Does Arkansas require a permit to cut trees on my own land?
No, cutting trees you planted on your own property does not require a timber harvest permit in most Arkansas counties. If you are clearing land or disturbing wetlands, state or federal rules may apply. The main paperwork is the sales tax permit and, if selling live trees, a nursery license [1][4].
What species grow best for Christmas trees in Arkansas?
Virginia pine is the most reliable species on acidic, well-drained sites across Arkansas. Eastern white pine does well in the Ozarks with good drainage and cooler nights. Leyland cypress and Arizona cypress grow fast in south Arkansas but can suffer winter dieback farther north. Choose species by county hardiness and soil drainage [8].
Do I need a business plan to get a Christmas tree farm license in Arkansas?
No. The Arkansas State Plant Board does not review business plans. The nursery license application asks for your name, address, nursery location, and the type of stock you will handle. The sales tax permit also does not require a business plan. A written plan helps you get a USDA farm loan, but no state license requires one [1][3][4].
How much is a county business license for a Christmas tree farm in Arkansas?
County privilege license fees range from about $25 to $75 a year where they exist. Some rural counties have no privilege license. Cities may add another $15 to $50. Ask the county clerk and city clerk before opening. This is separate from the state nursery license and sales tax permit [1][3][4].
Does Arkansas have a state Christmas tree association?
Arkansas does not have a dedicated state Christmas tree association with paid membership as of this writing. Growers in Arkansas often join the Southern Christmas Tree Association or the National Christmas Tree Association for regional pest alerts, marketing, and species trials. County extension offices also maintain informal lists of local growers [8].
Can I get a USDA farm number for a small Christmas tree farm in Arkansas?
Yes. There is no minimum acreage. A 2 acre choose-and-cut block qualifies. Bring proof of land control, like a deed or lease, and a photo ID to your county FSA office. The farm number is free and opens access to conservation cost-share, loans, and disaster programs [5].
Sources
- Arkansas Code § 2-16-204: No person shall engage in the business of growing or dealing in nursery stock in Arkansas without a license from the State Plant Board.
- Arkansas Code § 2-16-206: Base nursery license fee is $25, dealer license fee is $10.
- Arkansas Department of Agriculture, Plant Industries Division, Nursery and Floriculture: State Plant Board issues nursery grower and dealer licenses; applications and current fee schedule available through Plant Industries Division.
- Arkansas Department of Finance and Administration, Sales and Use Tax Permit: Every person making retail sales of tangible personal property in Arkansas must obtain a Sales and Use Tax Permit; permit is free and available online.
- USDA Farm Service Agency, Farm Numbers: Farm numbers are free, have no minimum acreage, and are required for FSA loan, conservation, and disaster programs.
- Arkansas Code § 26-26-407: Land devoted to commercial agriculture receives use-value assessment rather than market-value assessment for property tax.
- National Christmas Tree Association, Christmas Tree Facts: It costs about $10,000 per acre to establish a Christmas tree plantation.
- University of Arkansas System Division of Agriculture, Christmas Trees: Virginia pine reaches marketable size in about 5 years in Arkansas; Eastern white pine takes 7-8 years; species selection depends on county.
- Arkansas Secretary of State, Business and Commercial Services, Forms and Fees: LLC filing fee in Arkansas is $45.
- USDA NASS, 2017 Census of Agriculture, Arkansas State Data, Table 40: Fewer than 100 Arkansas farms reported Christmas tree sales in the 2017 Census of Agriculture.