Timberland provides an alternative investment portfolio to thousands of Americans who are looking to diversify their incomes. Investing in timberland is a sound decision for many reasons: timber is an asset that increases in quantity on its own – through biological growth, both the timber and the land are ripe for price appreciation, timberland ownership offers portfolio diversification and acts as a hedge against inflation, and timberland is a hard, physical asset with a limited supply and tax advantages. At The Shipley Co., we bring years of niche experience in the timberland industry to the table and we help our clients maximize their timberland profits every day.
The Low Volatility of Timber Prices
Due to unpredictable economic development, many investors in the United States have opted to buy timberland as an alternative investment portfolio. In most cases, timber prices have higher stability than most stocks in the market. Even when the prices of most products have gone down, the prices of timber are known to stand. Timberlands are known for their high returns and relatively low risks. Besides serving as a good investment option, timberland properties also provide a great outlet for family-friendly activities and relaxation in a beautiful, natural setting.
The Rapid Growth of Investment
In the US, the number of institutions investing in timberland is rising at a high rate. As a result, timber prices are set to increase rapidly. More buyers are competing for available land, which is one factor that is pushing the prices of timber to a high level. This shows a greater possibility of timber investment becoming one of the best business portfolios to venture into.
With different species in your timberland that mature at different periods, you will likely enjoy flexible harvesting, especially during summertime. This means that you do not have to wait for all your trees to mature. Sometimes there may be a sudden increase in the prices of a particular species, and you can take advantage of these opportunities to make a profit on your own schedule.
Return and Cash Yields
In most cases, the total return of your investment on timberland is enhanced by the biological growth of similar trees. You may find that your timberland population has increased by 5% within a year, depending on the species of the plants that you have grown. Different trees mature at different periods. As you wait for the others to mature, or a good number of them to sell together, seeds may fall and get dispersed to different places in your timberland. If the climate of the place is favorable, the seeds are likely to burst into new growths that increase the number of trees you have. You can use the additional trees for personal use or decide to cut them off if the undergrowth is too high. With thoughtful forestry management and recommendations from The Shipley Co. team, your questions will be answered and your profits maximized.
Timber is a renewable, natural resource that provides ecosystems with benefits such as clean air, clean water, wildlife habitat and carbon sequestration. Conservation ensures the preservation of forest lands for future generations. With timberland, you can take pride in knowing you are playing an active role in preserving the natural environment.
Timberland is rising in popularity as a solid, investable asset. Like real estate, infrastructure and transportation, it’s a real asset—one that delivers stable long-term returns, income and inflation protection. When you consult with The Shipley Co. about your timberland, you can have peace of mind knowing you’re in the best of hands.