A number of forestry experts have discussed their opinions about forestry investment trends.
Colin Millais, a director of Forestry Investment Management (FIM), told The Independent that the typical forestry investment currently generates an equivalent annual return of about 4.5 per cent, after costs and inflation. “You’re making returns through the physical growth of your trees,” he said.
However, forestry investments are not a source of fast cash, according to Tim Kirk, of Tilhill, another forestry investment company. “I wouldn’t advise people to invest unless they have spare cash,” he said. “Far too many people invest for the tax breaks without giving it enough thought.”
The outlook for timber has improved, according to Catherine Woolley, of forestry investment specialist Fountains. The appreciation of the euro against the pound has enabled UK growers to compete with European producers. Woolley also believes “many UK manufacturers buying timber are looking for wood with UK accreditation.”
Forestry investment has the additional benefit of being very eco-friendly. Forests breathe oxygen into the environment, whilst providing a varied natural habitat. Timber is one of few renewable raw materials used by industry, and forestry investment is tax-free.
Those who choose to invest in larger forests can have their pick of different types of trees, thus producing a more regular income stream.