Investment in Timberland

If I plant trees on 100 acres of land,
how much income will my investment produce for me?

a) Assuming the land is already owned, site preparation and reforestation expenses will approximate $17,500. This takes place in year 1.

b) Estimated return on investment at first thinning in year 12: $26,000.

c) Estimated return on investment at second thinning in year 22: $102,000

d) Estimate return on investment at final clear cut in year 32: $328,000.

e) Assume annual property taxes are $1/acre, or $100/year total.

f) Total estimated annual rate of return: 13.3%

g) Assume further that hunting rights are leased during this time, resulting in income at $5/acre, or $500/year total.

h) Total estimate annual rate of return increases to: 14.6%

i) Projected incomes are based on various growth and yield tables. Actual results may vary.

First cut after 12 years produces


Second cutting 10 years later produces


Final clearcut 10 yrs later produces