|
|
If you are fortunate enough to have inherited a legacy of tree planting from your family, or the past stewards of the land, the rewards can be considerable.
A 40 hectare, moderately well tended, 38 year old stand of radiata pine can easily return $30,000/ha, even situated two hours away from a port or processing point. That constitutes a return of $1,200,000 before tax.
The strategic worth of such a resource is obvious. If you have more sons or daughters than the existing estate can support, it is ample to purchase more property. It can provide enough revenue to retire comfortably without seriously jeopardising the farm equity inherited by the next generation. It can be used as a contingency in years where the principal agricultural business is in a cyclical low, with the added benefit of minimising your tax bill on the forest revenue. These benefits come from land that is not the best grazing land. You can lose little or no agricultural returns, maintain land in a sustainable state, and improve the farm's and your family's financial strength at the same time.
A farm with an even age class of sizable areas in trees (i.e. plantings every five years with individual areas over four hectares) is a much stronger economic unit than one without trees. Returns from one hectare of 60 year old Douglas fir can be even more impressive. A return of $60,000/ha, 120 kilometers from the port, is possible. Forty hectares represents $2,400,000.
These are not exorbitant estimates, but actual returns. All that is required to make these scenarios a reality, is someone with the vision to plant.
[Forestry in the High Country] [Planning] [Management] [Forest Species]