The 500 million acres of United States timberland isn’t just owned by foresters and paper companies. Increasing amounts have been bought by private investors (often buying just a few hundred acres), hedge funds, and big institutions. Why the sudden interest in one of the world’s oldest industries?
We live in a world where the S%P 500 can lose over half its value in 15 months, where home values recently tumbled by more than 30% nationwide (immediately after reaching record highs), and even “safe” municipal bonds returning just 3% are at risk of default. In contrast, timberland returns have been relatively stable over time, offer unique tax advantages, and function both as a hedge against inflation and a return producing investment.
The author (a private investor) has dedicated significant time and resources to researching the details of timberland ownership and shares his research and insights – both for individuals interested in purchasing timberland as well as those managing the forested lands they already own.