Reforestation is an investment which pays dividends over the life of a timber stand.
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Looking for a source of income between timber harvests? It’s possible to gross $1,000 or more per acre per year by gathering, marketing and delivering Longleaf Pine straw. Or if you don’t want to take on the whole job, pine straw suppliers may pay you up to $150 per acre for the right to harvest fallen needles on your land. In Georgia and North Carolina, pine straw is a $50 million industry annually.
A timberland investment offers a great hedge against inflation as reported recently in a report by J P Morgan Investment Analytics & Consulting. J. P. Morgan was quoted as saying “Timberland correlates highly with inflation and is therefore an effective investment for preserving capital. It has outperformed other commodities in both high and low inflationary environments.” They went on to recommend that asset managers consider purchasing timberland
The southern pine beetle is the most destructive forest insect pest in the South. In North Carolina last year, the beetles affected over 1.5 million acres of pine and destroyed timber valued at over 12.4 million dollars.
Many landowners think of harvesting and reforestation as two separate and sequential activities, but planning for reforestation before the first tree is harvested can make a big impact on your bottom line by reducing expenses and increasing revenues.
A landowner selling his land always wants the best price for his property. There are several issues to consider before marketing the land that can greatly increase the marketability and drive up the price. Many of these same issues also affect the marketability of the timber.
Just as savvy investors in the stock market often go against the crowds; buying when others are selling and selling when others are buying, savvy timberland owners should look for similar opportunities. When everyone else is “waiting on the market to get better”, may be the very best time to market your timber.
After we have sold your timber and the excitement of receiving a top-dollar price has subsided, it is time to conduct the harvest. Supervision of the implementation of Best Management Practices (BMP’s) during your timber harvest is a primary part of our work. Many private forestland owners may not even know what BMP’s are and, if they do, they probably haven’t given much consideration to how to implement them. However, they are critical to a successful harvest and the future productivity of the land.
Many NC landowners are unaware of the potential for savings under the NC Present Use Program enacted in 1974. The purpose of the program was to provide landowners with a way to reduce property taxes, in the face of rising real estate values. Without this program, many landowners would have been forced to sell their property just to pay the taxes. Under the program, tax values are assessed based upon the current use instead of market value. Land can qualify as either timberland or agricultural property.
A good management plan acts as a road map to take you to where you want to be in regards to your property. Without one, your final destination may not be what you were expecting. In preparing your plan, one of our professional foresters will work with you to develop a customized forest management program to meet your goals. The plan can significantly increase the financial returns from your property. In addition to forest management recommendations, the plan will also address wildlife management, recreation, water quality and soil conservation.