Thread replies: 8
Thread images: 1
Thread images: 1
Anonymous
TIMBER INVESTMENT THREAD 2017-01-13 03:33:40 Post No. 1728897
[Report] Image search: [Google]
TIMBER INVESTMENT THREAD 2017-01-13 03:33:40 Post No. 1728897
[Report] Image search: [Google]
You got questions? I got answers.
remember:
>roads will be your number one expense during harvest, and the number one rule for maintaining roads is to keep water off it.
>a well-managed stand will produce a much higher rate of return than a stand simply left to grow. Don't let your assets compete with each other. Thin it out.
>manage for high-value logs.
>Just because you can harvest doesn't mean you should. A young, vigorously growing tree can produce as much as a 20% rate of return.
>the final profit after harvest is a funcion of many things, but don't forget about proximity to the mill. A lot hat is far away from the mill will have higher transport costs.
>In states with strict property rights, hunting leases can make you extra revenue.
>Take advantage of current use tax subsidies.
>>
Northwest Louisiana and East Texas are prime areas for scoping investment-grade timber lands.
Here's a directory of for-sale timber real estate in LA: http://www.landwatch.com/Louisiana_timberland_for_sale
>>
>>1728897
Neat. Why isn't poplar on the list? I thought that was a very fast growing economical tree to farm?
Does most demand for timber come from construction? Is it better to just sit and wait if there is a stagnant construction trend?
>>
>>1728907
It is listed as Aspen, which covers any tree from the genus populus. The great thing about aspen and poplar is that it will regenerate from roots when you cut it, and growing stock coming from the roots will grow twice as fast as a tree growing from seed, so this is where clearcutting can be a good tool.
>Does most demand for timber come from construction? Is it better to just sit and wait if there is a stagnant construction trend?
That depends. demand for aspen and softwood comes almost exclusively from construction, but demand for hardwoods comes from every thing from construction, furniture manufacturers, gun manufacturers, energy production, etc. It really depends on your local market.
Overall, yes, wood prices will be a lot better during the height of a business cycle. If you look at publicly traded forestry companies, they offer really great dividends, but they are unstable dividends. whenever construction acivity takes a dip, the dividends are usually suspended. That said, rules about timing the market still apply--it can be difficult.
>>
I want to get into timber. what is your opinion on developing markets logging. I know some people in Africa who own lumber mills.
>>
>>1728903
This seems appealing but what would be my expected cash flow for 100 acres per year in Louisiana?
>>
>>1728925
>what is your opinion on developing markets logging
That's beyond my scope of knowledge.
>This seems appealing but what would be my expected cash flow for 100 acres per year in Louisiana
The south has some of the best investment grounds in the country. The problem is, it requires initial investment because a lot of forestry done down there is plantation forestry.
But if you were to start a yellow pine plantation, you could expect to grow 1-1.25 cords per acre per year, with 1 cord goring for around $350 for stumpage, or the prices paid to the landowner when you sell the rigths to log the property
http://www.ldaf.state.la.us/wp-content/uploads/2016/11/3rdqtr2016.pdf
Thread posts: 8
Thread images: 1
Thread images: 1