blog




  • Essay / Forestry Investment Paper - 1668

    InvestmentInvestmentIntroductionForestry investment can be considered a very unique investment option compared to other existing money markets. Investment in wood, for example, is most evident during the long growth period. Southern pine, for example, would require a period of 45 to 60 years from seed to harvest (Siegel, 1996). Eastern hardwoods may take a longer period of time, between 60 and 80 years, to produce quality lumber products. However, the investment horizon can be reduced to approximately 25 to 35 years when southern pine plantations are intensively managed. In other words, intensive management can shorten said plantations but nevertheless remains a long investment period. Other benefits of forestry investment (besides wood products) include wildlife which could be non-game or game species, provision of quality water, outdoor recreation, hunting leases and the natural beauty that results from it. An investor can thus purchase the number of acres he wishes, with the age classes of wood he desires, ranging from seedlings to fully mature trees (Siegel, 1996). Based on the historical context, forestry investments or rather investments in forest lands have started in recent years. early 1980s (Binkley, 2005). This means that she has a very long experience in the investment field and can therefore be considered quite developed today. The rewards associated with forestry investments often include much more than just financial returns. Benefits that are not reflected in the balance sheet include the sense of pride derived from the effectiveness of resource management and owner satisfaction. These intangible benefits allow homeowners to conserve time...... middle of paper ...... e diseases and pests whose risk is high due to difficulty of detection. ConclusionIn a word, pro investment in forestry has many advantages over other money markets. These advantages are evident in the case of forest plantations, as they increase the chances of obtaining high profits from such an investment. However, as noted above, forestry investments, to a lesser extent, face certain risks and challenges not encountered in other money markets.ReferencesBinkley, C. (2005). A Global Forest Investment Strategy in Emerging Markets, Washington DC: Follow 900.P.Harrison. (2002). World agriculture: towards a 2015/2030 synthesis report. Food and Agriculture Organization of the United Nations, p. 66 Siegel, W. C. (1996). Forest Owners' Guide to Federal Income Tax, United States: DIANE Publishing.