Comments on: Your Money Can Slowly Grow On Trees (IFS) http://sharkinvestor.com/2008/04/02/your-money-can-slowly-grow-on-trees-ifs/ Bloody Fresh Financial Fish Sat, 22 Nov 2008 04:43:43 +0000 http://wordpress.org/?v=2.5.1 By: John http://sharkinvestor.com/2008/04/02/your-money-can-slowly-grow-on-trees-ifs/#comment-813 John Thu, 31 Jul 2008 17:02:16 +0000 http://sharkinvestor.com/2008/04/02/your-money-can-slowly-grow-on-trees-ifs/#comment-813 Returns Returns are expressed as real rates of return over and above the rate of inflation. There is a lack of published information on returns from investment in forestry in Ireland. Growing for the Future - A Strategic Plan for the Forestry Sector in Ireland (5) estimated the real rate of return from forestry (Sitka spruce) as 5% including land cost and exclusive of grants and subsidies. Irish Forestry Unit Trust (IFUT) estimates the return from forestry as being within the range of 5% to 7% (4). At a conference on forestry investment organised by the Irish Forestry Industry Chain (IFIC), most speakers indicated returns in the region of 5 to 7% with the proviso that these could be higher if there was no land cost associated with the investment. Thus farmers planting their own land could expect significantly higher returns. In Britain on better quality land, with zero opportunity cost attributed, rates of return of 7% (1) and 6.5% (2) have been demonstrated. The World Production Outlook in Britain (3) concluded that rates of return were low and estimated an expected mean of 2.3% for the period 1977 - 81. Very favourable assumptions about land, labour and timber prices raised this to about 6%. Other analysts indicate returns from commercial conifer forestry in the UK are in the region of 4%-6% (7). Returns
Returns are expressed as real rates of return over and above the rate of inflation. There is a lack of published information on returns from investment in forestry in Ireland. Growing for the Future - A Strategic Plan for the Forestry Sector in Ireland (5) estimated the real rate of return from forestry (Sitka spruce) as 5% including land cost and exclusive of grants and subsidies. Irish Forestry Unit Trust (IFUT) estimates the return from forestry as being within the range of 5% to 7% (4). At a conference on forestry investment organised by the Irish Forestry Industry Chain (IFIC), most speakers indicated returns in the region of 5 to 7% with the proviso that these could be higher if there was no land cost associated with the investment. Thus farmers planting their own land could expect significantly higher returns.

In Britain on better quality land, with zero opportunity cost attributed, rates of return of 7% (1) and 6.5% (2) have been demonstrated. The World Production Outlook in Britain (3) concluded that rates of return were low and estimated an expected mean of 2.3% for the period 1977 - 81. Very favourable assumptions about land, labour and timber prices raised this to about 6%. Other analysts indicate returns from commercial conifer forestry in the UK are in the region of 4%-6% (7).

]]> By: Managed Forex Accounts » Blog Archive » Your Money Can Slowly Grow On Trees (IFS) http://sharkinvestor.com/2008/04/02/your-money-can-slowly-grow-on-trees-ifs/#comment-388 Managed Forex Accounts » Blog Archive » Your Money Can Slowly Grow On Trees (IFS) Wed, 02 Apr 2008 21:29:44 +0000 http://sharkinvestor.com/2008/04/02/your-money-can-slowly-grow-on-trees-ifs/#comment-388 [...] Share This [...] [...] Share This [...]

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