This entry covers productive land whose value derives from what grows on it: timberland (commercial forest harvested for wood products), vineyards (grapes for wine), and orchards (tree and vine crops like almonds, citrus, and apples).
Log in to followA borrower brings you 300 acres, appraised at 1.6 million, and the appraiser splits it into 900k of land and 700k of standing timber. Underwriting question that I keep going back…
The number everybody quotes for timberland is a standard deviation around 6.9 percent against almost 16 for the S&P, with long-run annualized returns near 10.7 since the index sta…
I read the NCREIF timberland volatility figure three times before it bothered me. Around 6.9 percent standard deviation against roughly 16 for public equities, and the properties…
Trying to get the two paths straight in my head before I spend money on either. Path one is public shares in a timber company or a fund that holds forestland. You can buy a hundre…
Working through what happens if the thing burns. On a pine tract, most of the value sits in the standing inventory, and a single fire or a hurricane track can take a large share o…
Small tract, pine, first commercial thinning is technically due. A thinning is where you cut maybe a third of the stems to give the rest room to grow, and the wood that comes out…
Two listings open on my screen and they are almost opposites, so I want to put the choice to the room before I talk myself into whichever one I looked at last. The first is 70 acr…
Looked at a 140 acre cutover parcel last month where the timber cruise supported maybe half the asking price. The listing didn't hide it either. Frontage on a county road, a creek…