Many folks purchase timberland for a private place to camp, hunt or hike. But timberland can also provide much more – it can be a long-term financial asset.
Investors look for ways to earn long-term returns. And they want to make sure their asset values are stable, appreciate, produce a return, and remain relevant in an ever-changing world. Timberland offers a time-tested investment vehicle. In fact, it’s been referred to as “the ultimate agriculture investment.”
Trees grow year in and year out. In good growing regions in the U.S. trees grow at 6 to 8 percent a year. Also, the price of lumber has increased at a consistent rate throughout the years.
And the outlook for the future is strong. In Arkansas, for instance, Potlatch Preferred Broker J.D. Neeley of United Country – Neeley Forestry Service says, “We’re expecting to see a return to historic averages on pine saw timber pricing.”
And trees grow back, making timberland a sustainable resource investment.
Unlike more complicated investments, timberland is straightforward. You buy land to grow trees on. They grow. You sell them, then replant and start the process again. In the meantime, the value of the land those trees are growing also can increase.
A major perk of investing in timberland is that you can simultaneously use your property for recreational outdoor pursuits while generating income and long-term value. Timberland is an investment in the future that you can enjoy in the present.