Can You Make Money from Forestry?

Forestry has long been an attractive investment for those looking to diversify their portfolio with a sustainable and income-generating asset. But how profitable is it really? In this article, we’ll explore the different ways you can make money from forestry and whether it’s a worthwhile investment.

1. Timber Harvesting

One of the most common ways to generate income from forestry is by growing and selling timber. Trees such as pine, spruce, and oak take years to mature but can provide a steady return when harvested and sold for construction, furniture, or paper production. Timber prices fluctuate, but demand remains strong, especially in industries that rely on sustainable wood sources.

2. Land Appreciation

Forestry land itself can appreciate over time, especially as demand for sustainable and carbon-offset projects grows. Well-managed forests become more valuable, allowing investors to sell their land at a profit after several years.

3. Carbon Credits & Environmental Payments

As governments and corporations aim to reduce their carbon footprint, they often pay landowners for carbon credits. By maintaining or expanding forests, investors can sell these credits to businesses looking to offset their emissions. Additionally, government grants and subsidies may be available to support sustainable forestry projects.

4. Tax Free Returns

Under current tax legislation, all income and capital growth from Forestry is tax free. We have a detailed report which explains the tax benefits of a forestry investment.

Forestry Investment Calculations

• For each acre planted, there is an annual income payment of €450 per acre for 20 years. This income is tax-free, providing a total of €9,000 per acre over the period.

• Once the trees are harvested, it is estimated that an acre of timber will earn between €6,500 to €8,500 per acre, depending on timber prices.

• Combining these earnings, an investor could generate €15,500 to €17,500 per acre over the full investment cycle, excluding potential land appreciation.

5. Long-Term Wealth Preservation

Forestry is a long-term investment that can serve as a hedge against inflation. Unlike stocks or property markets that can be volatile, forests continue to grow in value over time, providing a stable and reliable asset.

Is Forestry a Good Investment for You?

If you have a long-term investment horizon and are interested in sustainable wealth-building, forestry can be a great addition to your portfolio. It offers a mix of income streams, environmental benefits, and asset appreciation. However, it requires patience, proper management, and an understanding of market trends.

If you are looking to Invest in Forestry to benefit from a regular income and capital growth, then get in contact with a member of our team and we will be glad to advise you.