What to do?
jimifrommi at aol.com
Fri Aug 21 08:21:32 EST 1998
In article <35dd0186.2076337 at nntp.a001.sprintmail.com>, ddd at hi.there.com (ddd)
>Subject: What to do?
>From: ddd at hi.there.com (ddd)
>Date: Fri, 21 Aug 1998 05:21:20 GMT
>Been reading in the background for a few days to get the
>feel of this newsgroup. It appears to be pretty much on
>target with some spam, but several knowledgable folks
>Which brings me to my question. My wife and I are tossing
>around the idea of buying some land (in southern Missouri)
>and planting some trees for our retirement. We're in our
>mid 30's now and hoping to retire around 60. Our questions
>1. Is this approach (buy land, manage it loosely for ~20
>years, then harvest) financially sound? Would we do better
>by sticking our retirement $ in CDs or would the potential
>future timber sales offer a greater return?
>2. If this approach offers significant returns over other
>savings/investment methods, what trees should we consider
>planting, realizing that it'd be 15-20 years before we even
>consider starting to harvest?
>3. Can you point me to any good readings on the financial
>aspects of tree farming?
>I realize you may have seen these questions innumerable
>times, if so point me to the NG FAQ and I'll retrieve some
>data from there. Thanx for your patience and I look forward
>to your responses.
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20 years is relatively short with the respect to TIMBER management of land.
You may possibly find some land with mature trees that is currently undervalued
by the normal real estate market as their general perspective is "wooded" or
"non-wooded" wooded land generally yeilds a higher price for aestetic reasons.
With land such as this (of course, with the help of a forester) you may be able
to realize 2 timber harvests in your 20 year period (if you could consider your
kid's or grandkid's lifetimes you'd be on an even better track with regard to
return on investment). Of course management for Christmas Trees involves much
shorter time periods, but it is labor intensive (yearly pruning, etc.) and
dependent on your ability to market them at a maximum profit.
In MANY cases it is possible to purchase some UGLY looking forest land (not too
far from centers of employment -- perhaps an hours drive) and manage the land
for primarily AESTETHICS. Open some vistas, plant some pretty blue spruce (use
some of them as Christmas trees for a "road side" sale 10 years down the road)
and perhaps create some edge for wildlife. As the years pass, more folks will
desire to "get out of the big city" and place a very large value on your
BEAUTIFUL looking land as a potential homesite -- perhaps with the possibility
of archery deer hunting from their back yard. One step further: Perhaps you
divide the land, and sell it with buildings in place also realizing a profit on
The possibilities are endless.
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