Making a profit from woodland?

[Nature]

Hi, I am new to the forum.

 

I am an investor and have stumbled across an opportunity to buy some woodland, however I am unclear if I can make an ROI (return on investment) from it. I rather think I can't other than from the IHT and income tax benefits.

 

Anyway, your help and thoughts will be greatly appreciated.

 

Firstly, about me:

 

I have no experience whatsoever of owning or managing woodland, so I would need to employ one or more people. I have been successful in business however.

 

I currently have no forestry equipment at all, so I am starting from a blank canvas.

 

I can raise the capital to buy the woodland and have the funds to employ staff and buy the right equipment (within reason and only if it makes sound commercial sense).

 

I am a nature lover and really want to learn about and get involved with woodland management (I have a biological sciences degree). I would love to own/manage/improve the woodland, but it is first and foremost a business venture.

 

 

About the Woodland:

 

It is a plantation on ancient woodland with a blanket TPO

 

There are approx 47 acres of softwood (mainly Douglas Firs) and broad leaves with permission to thin 700 cubic metres - mainly the Douglas Firs, I guess.

 

There are good forest tracks and there is good access for extraction.

 

There are quite steep slopes (I am guessing the max is 20%) and I would want the minimum damage caused by vehicles.

 

It is secluded and has no public rights of way.

 

Asking price is just over £210k

 

 

 

So my questions are:

 

1) Without knowing the exact breakdown of the species to be thinned, what sort of revenue would 700 cubic metres (of Douglas Fir, for example) bring?

 

2) To me the big question is once the woodland has been thinned, is it possible to generate revenue beyond grants and within the constraints of planning law and the TPO status of the woodland?

 

3) In general, what sort of budget would be required for forestry equipment?

 

4) Permanent staff or contractors? Which would be preferable? Any ideas on numbers/skills required?

 

5) Is buying woodland a good idea if you want a sustained commercial return as well as the desire to improve and look after it into the future?

 

I suspect the capital sum required for the purchase of the woodland and the capital equipment expenditure will make this commercially unviable, but I want to explore the idea with those who have knowledge and experience.

 

I hope you don't mind me picking your collective minds, but you never know, if I go ahead, hopefully I can find the right skills in this forum!

 

Many thanks

[Nature]

Hi, I am new to the forum.

 

I am an investor and have stumbled across an opportunity to buy some woodland, however I am unclear if I can make an ROI (return on investment) from it. I rather think I can't other than from the IHT and income tax benefits.

 

Anyway, your help and thoughts will be greatly appreciated.

 

Firstly, about me:

 

I have no experience whatsoever of owning or managing woodland, so I would need to employ one or more people. I have been successful in business however.

 

I currently have no forestry equipment at all, so I am starting from a blank canvas.

 

I can raise the capital to buy the woodland and have the funds to employ staff and buy the right equipment (within reason and only if it makes sound commercial sense).

 

I am a nature lover and really want to learn about and get involved with woodland management (I have a biological sciences degree). I would love to own/manage/improve the woodland, but it is first and foremost a business venture.

 

 

About the Woodland:

 

It is a plantation on ancient woodland with a blanket TPO

 

There are approx 47 acres of softwood (mainly Douglas Firs) and broad leaves with permission to thin 700 cubic metres - mainly the Douglas Firs, I guess.

 

There are good forest tracks and there is good access for extraction.

 

There are quite steep slopes (I am guessing the max is 20%) and I would want the minimum damage caused by vehicles.

 

It is secluded and has no public rights of way.

 

Asking price is just over £210k

 

 

 

So my questions are:

 

1) Without knowing the exact breakdown of the species to be thinned, what sort of revenue would 700 cubic metres (of Douglas Fir, for example) bring?

 

2) To me the big question is once the woodland has been thinned, is it possible to generate revenue beyond grants and within the constraints of planning law and the TPO status of the woodland?

 

3) In general, what sort of budget would be required for forestry equipment?

 

4) Permanent staff or contractors? Which would be preferable? Any ideas on numbers/skills required?

 

5) Is buying woodland a good idea if you want a sustained commercial return as well as the desire to improve and look after it into the future?

 

I suspect the capital sum required for the purchase of the woodland and the capital equipment expenditure will make this commercially unviable, but I want to explore the idea with those who have knowledge and experience.

 

I hope you don't mind me picking your collective minds, but you never know, if I go ahead, hopefully I can find the right skills in this forum!

 

Many thanks

[Nature]

Hi, I am new to the forum.

 

I am an investor and have stumbled across an opportunity to buy some woodland, however I am unclear if I can make an ROI (return on investment) from it. I rather think I can't other than from the IHT and income tax benefits.

 

Anyway, your help and thoughts will be greatly appreciated.

 

Firstly, about me:

 

I have no experience whatsoever of owning or managing woodland, so I would need to employ one or more people. I have been successful in business however.

 

I currently have no forestry equipment at all, so I am starting from a blank canvas.

 

I can raise the capital to buy the woodland and have the funds to employ staff and buy the right equipment (within reason and only if it makes sound commercial sense).

 

I am a nature lover and really want to learn about and get involved with woodland management (I have a biological sciences degree). I would love to own/manage/improve the woodland, but it is first and foremost a business venture.

 

 

About the Woodland:

 

It is a plantation on ancient woodland with a blanket TPO

 

There are approx 47 acres of softwood (mainly Douglas Firs) and broad leaves with permission to thin 700 cubic metres - mainly the Douglas Firs, I guess.

 

There are good forest tracks and there is good access for extraction.

 

There are quite steep slopes (I am guessing the max is 20%) and I would want the minimum damage caused by vehicles.

 

It is secluded and has no public rights of way.

 

Asking price is just over £210k

 

 

 

So my questions are:

 

1) Without knowing the exact breakdown of the species to be thinned, what sort of revenue would 700 cubic metres (of Douglas Fir, for example) bring?

 

2) To me the big question is once the woodland has been thinned, is it possible to generate revenue beyond grants and within the constraints of planning law and the TPO status of the woodland?

 

3) In general, what sort of budget would be required for forestry equipment?

 

4) Permanent staff or contractors? Which would be preferable? Any ideas on numbers/skills required?

 

5) Is buying woodland a good idea if you want a sustained commercial return as well as the desire to improve and look after it into the future?

 

I suspect the capital sum required for the purchase of the woodland and the capital equipment expenditure will make this commercially unviable, but I want to explore the idea with those who have knowledge and experience.

 

I hope you don't mind me picking your collective minds, but you never know, if I go ahead, hopefully I can find the right skills in this forum!

 

Many thanks

[slack ma girdle]

Is this wood in the middle of nowhere or is it close to habitation ?

[slack ma girdle]

Is this wood in the middle of nowhere or is it close to habitation ?

[slack ma girdle]

Is this wood in the middle of nowhere or is it close to habitation ?

[Nature]

Is this wood in the middle of nowhere or is it close to habitation ?

 

It's about 6 miles from the nearest town.

[Nature]

Is this wood in the middle of nowhere or is it close to habitation ?

 

It's about 6 miles from the nearest town.

[Nature]

Is this wood in the middle of nowhere or is it close to habitation ?

 

It's about 6 miles from the nearest town.

[Charlieh]

on 47 acres of softwood, you wont employ anyone, you wont buy any extraction equipment (unless your doing the work yourself), and you probably wont make any return on your investment (well not at that price per acre for softwood unless its close to final crop)

 

I would suggest very seriously if you considering this you seek specialist advice, as its too much ifs and guesswork without walking the site, predictions of timber yields, and knowing exactly what the terrain is like to work

 

the estimated value of the thinnings will depend on so many variables, what thinnings is it? first, second, what is the quality, if your getting sawlogs what grade are then? if its early thinnings then unless its very easy harvesting, it will be a cost operation.

you could be looking at a range from -£5/ton to +50/ton depending on the above.

 

You need to be realisitc about this, and seek some detail advice thats specific to the site for that level of investment