Making a profit from woodland?

[Nature]

Wow, so many good replies already. Thanks

 

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

 

I don't think i explained that correctly as it is actually 47 acres of mixed woodland, mainly broad leaf, but with about a third given over to Douglas Firs.

 

The trees to be thinned are about 30 years old so they are substantial, however I do agree with your sentiments that the woodland seems too small for sustained profitability.

 

We run educational programs which provides the funds and resource to help maintain our 45 acres of ancient woods and SSSI called Holly Hayes Woods.

 

Also, have a look at Hill Holt, just google it and it will come up.

 

Thanks for the suggestions. I've had a look at your website and Hill Holt. I had been wondering about monetising the woodland via other means such as education, however its location is a bit off the beaten track and so is not that easy to get school mini-buses etc to it.

 

I'll give it more thought though

[Charlieh]

If you gave a location even roughly, it may help a more detailed response, for example round here in West Midlands the grants are different (in financial availability) to East Mids and Wales likewise, also timber prices will vary hugely even within regions.

 

If your within West Mids, Cumbria, Wales, East Anglia and the south west you may be eligable for a free/subsidised visit via one of the many government funded projects round the UK from someone who could give you a great deal more info.

[Charlieh]

If you gave a location even roughly, it may help a more detailed response, for example round here in West Midlands the grants are different (in financial availability) to East Mids and Wales likewise, also timber prices will vary hugely even within regions.

 

If your within West Mids, Cumbria, Wales, East Anglia and the south west you may be eligable for a free/subsidised visit via one of the many government funded projects round the UK from someone who could give you a great deal more info.

[Charlieh]

If you gave a location even roughly, it may help a more detailed response, for example round here in West Midlands the grants are different (in financial availability) to East Mids and Wales likewise, also timber prices will vary hugely even within regions.

 

If your within West Mids, Cumbria, Wales, East Anglia and the south west you may be eligable for a free/subsidised visit via one of the many government funded projects round the UK from someone who could give you a great deal more info.

[andy26]

As with much advice from above, the fact you're even contemplating employing foresters (absolute madness) full-time says you would do well to pay a Forestry consultant to view the wood with you for an hour or two.

 

If it was unregulated and you could clear-fell without replanting, then yes you could make a healthy ROI.

However thinning, or selective felling is more labour intensive, less productive and hence less profitable.

 

As a hedge against inflation and as a safe haven for cash, then its perhaps one of the best places to invest. Relying more on the asset (land) appreciation, than the timber production.

 

Paintballing, quad biking, game shooting etc, can all offer some reasonable income however all have their drawbacks and may not be compatible with your aims for the woodland or indeed those of the local planners.

 

If you could give a few more details, i.e. approximate area of the country, size of trees, topography and details of your felling licence e.g. conditional or unconditional etc.

[andy26]

As with much advice from above, the fact you're even contemplating employing foresters (absolute madness) full-time says you would do well to pay a Forestry consultant to view the wood with you for an hour or two.

 

If it was unregulated and you could clear-fell without replanting, then yes you could make a healthy ROI.

However thinning, or selective felling is more labour intensive, less productive and hence less profitable.

 

As a hedge against inflation and as a safe haven for cash, then its perhaps one of the best places to invest. Relying more on the asset (land) appreciation, than the timber production.

 

Paintballing, quad biking, game shooting etc, can all offer some reasonable income however all have their drawbacks and may not be compatible with your aims for the woodland or indeed those of the local planners.

 

If you could give a few more details, i.e. approximate area of the country, size of trees, topography and details of your felling licence e.g. conditional or unconditional etc.

[andy26]

As with much advice from above, the fact you're even contemplating employing foresters (absolute madness) full-time says you would do well to pay a Forestry consultant to view the wood with you for an hour or two.

 

If it was unregulated and you could clear-fell without replanting, then yes you could make a healthy ROI.

However thinning, or selective felling is more labour intensive, less productive and hence less profitable.

 

As a hedge against inflation and as a safe haven for cash, then its perhaps one of the best places to invest. Relying more on the asset (land) appreciation, than the timber production.

 

Paintballing, quad biking, game shooting etc, can all offer some reasonable income however all have their drawbacks and may not be compatible with your aims for the woodland or indeed those of the local planners.

 

If you could give a few more details, i.e. approximate area of the country, size of trees, topography and details of your felling licence e.g. conditional or unconditional etc.

[Nature]

Again, thanks very much for your considered replies.

 

The woodland is in Cornwall.

 

If it was unregulated and you could clear-fell without replanting, then yes you could make a healthy ROI.

However thinning, or selective felling is more labour intensive, less productive and hence less profitable.

 

Good points. It is heavily regulated with that blanket TPO. Also I could not possibly clear-fell it, even if it was unregulated.

 

the fact you're even contemplating employing foresters (absolute madness) full-time says you would do well to pay a Forestry consultant to view the wood with you for an hour or two.

 

I was going to seek consultancy, if there was a consensus of opinion from those on this forum that investing in this woodland is a reasonably sensible idea.

 

So far, the consensus is that it is not commercially viable. I appreciate the thoughts about other uses such as paint balling, quad biking etc. Whereas shooting and maybe even paint-balling might be OK (but for shooting, I think the woodland isn't big enough), I wouldn't think about quad biking because of the damage and noise it would create.

 

As a hedge against inflation and as a safe haven for cash, then its perhaps one of the best places to invest. Relying more on the asset (land) appreciation, than the timber production.

 

Good point, particularly with the IHT and income tax advantages, however I wonder if agricultural land would be a better investment, though I do like that woodland for what it is, and what it could become with management.

[Nature]

Again, thanks very much for your considered replies.

 

The woodland is in Cornwall.

 

If it was unregulated and you could clear-fell without replanting, then yes you could make a healthy ROI.

However thinning, or selective felling is more labour intensive, less productive and hence less profitable.

 

Good points. It is heavily regulated with that blanket TPO. Also I could not possibly clear-fell it, even if it was unregulated.

 

the fact you're even contemplating employing foresters (absolute madness) full-time says you would do well to pay a Forestry consultant to view the wood with you for an hour or two.

 

I was going to seek consultancy, if there was a consensus of opinion from those on this forum that investing in this woodland is a reasonably sensible idea.

 

So far, the consensus is that it is not commercially viable. I appreciate the thoughts about other uses such as paint balling, quad biking etc. Whereas shooting and maybe even paint-balling might be OK (but for shooting, I think the woodland isn't big enough), I wouldn't think about quad biking because of the damage and noise it would create.

 

As a hedge against inflation and as a safe haven for cash, then its perhaps one of the best places to invest. Relying more on the asset (land) appreciation, than the timber production.

 

Good point, particularly with the IHT and income tax advantages, however I wonder if agricultural land would be a better investment, though I do like that woodland for what it is, and what it could become with management.

[TimberCutterDartmoor]

pay a Forestry consultant to view the wood with you for an hour or two..

 

There are Forestry Consultants and there are forestry consultants

 

Some will baffle you with BS, acronyms and paperwork; others with any decent time spent as a woodman will cut the crap and make it much easier. Be careful who you pay. Frankly, pure consultants in my experience are a complete waste of time and money...