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Value of fully mature forestry

Comments

  • Registered Users, Registered Users 2 Posts: 2,625 ✭✭✭fergus1001


    Good forestry is going for 3500 to 4000 an acre and that forest is scrap from an investment point of view to be honest


  • Registered Users, Registered Users 2 Posts: 6,003 ✭✭✭handlemaster


    fergus1001 wrote: »
    Good forestry is going for 3500 to 4000 an acre and that forest is scrap from an investment point of view to be honest

    How much would timber like that sell for ?


  • Registered Users, Registered Users 2 Posts: 2,625 ✭✭✭fergus1001


    Your talking 45-55 euro per tonne at clear fell

    This would be worth 8 to 10,000 euro per acre

    And out of that you are looking at 1000 to 1300 per acre to replant and look after it for 4 years (as it is a requirement to replant)


  • Registered Users, Registered Users 2 Posts: 570 ✭✭✭timfromtang


    how much is forestry selling for ? what dictates its value ? What would typical returns per acre ?
    Don't know much about it but just seen this ad and wondered

    http://www.daft.ie/roscommon/commercial-property-for-sale/investment-property/aghalour-loughglinn-loughglynn-roscommon-103313/


    everything depends on the quality of the stand of timber, and on the markets available, for example oversize timber is hard to sell to the sawmills, and the pulp, pallet, and sawlog markets fluctuate with supply and demand.
    You'll get a nice table of roundwood prices and tree size on this report page 36
    http://www.teagasc.ie/forestry/docs/stats/Annual%20Forest%20Sector%20Statistics%202014.pdf

    all the best
    tim
    ps forests are young and growing fast in ireland, the industry is growing with them!!


  • Closed Accounts Posts: 40,061 ✭✭✭✭Harry Palmr


    Christ on a bike unless you are already familiar with the markets and can get a legally binding contract to buy before you spend your money stay well away.


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  • Registered Users, Registered Users 2 Posts: 2,625 ✭✭✭fergus1001


    Christ on a bike unless you are already familiar with the markets and can get a legally binding contract to buy before you spend your money stay well away.


    The timber or the land ?


  • Closed Accounts Posts: 40,061 ✭✭✭✭Harry Palmr


    The timber, land is easy to value by comparison and prices are fairly static unless PP and CPOs suddenly come into play! :p


  • Registered Users, Registered Users 2 Posts: 2,625 ✭✭✭fergus1001


    The timber, land is easy to value by comparison.


    Price and size of trees are positively corolated and the price of timber is fairly even and as such they can be modeled besed on historic average prices, trees get bigger every year and so does their value


  • Registered Users, Registered Users 2 Posts: 73 ✭✭accidental forester


    Getting a registered forester to do a survey of several sample patches will give you a better idea of the quality and potential value of the plantation. It will cost a couple hundred Euro. They'll be able to make recommendations and come up with an estimated value based on similar plantations. The Teagasc website (forestry pages) has a list of foresters.

    The estate agent should have copies of the original plantation documents. Request a copy of these. When selecting a forester try to select one not connected with the original planting company to a more impartial evaluation.

    From the satellite imagery, only about 60% appears to be mature and even-aged. The rest is either younger, on poor soil or a different species, it's hard to tell from the imagery alone.


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