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