FRA backs positive report on forestry investment options

A recent article on the advantages of investing in forestry, published in Farming Magazine and in the Irish Independent newspaper, has been welcomed by Forestry Research Associates (FRA).

The analysis and research consultancy said it backs this positive view of forestry as an investment option. The article explained that direct investment in forested land – either through a company that runs plantations or through buying and planting up an area of land independently, is a good way to develop a generous pension fund for the future.

The article, written by Joe Barry, said that the trees typically generate an annual investment return of between five and six per cent, which is a solid return without the risk involved with investing in stock markets. Barry explains that if the price of timber falls at the time trees reach maturity and can be sold, land owners or investors can simply opt to sit tight and wait until the market improves, which – points out Mr Barry – it eventually always does.

FRA’s analysis partner, Peter Collins, said, “The financial markets are not offering investors much reason for confidence at the moment, and investing in forestry is a truly risk-averse option for those who are keen to protect their money from any further stock-market crashes.”

FRA claims that an increasing number of affluent, ethically responsible investors are looking into ways to spread the risk in their portfolios while investing in projects that are both ecologically and socially responsible. The consultancy highlights forestry investment opportunities in emerging economies like Brazil, through firms like Greenwood Management, which offer people the chance to invest in plots of land that are being planted up with non-native tree crops, such as eucalyptus and teak.

Mr Barry claims there is always a market for timber, and with major economic growth in Asia and in Brazil, now is a good time to invest money in the Latin American country, according to FRA. “Brazilian forestry is a good bet in our opinion, not least because the steel industry is desperate for sustainably produced charcoal to help prepare infrastructure for the upcoming World Cups and Olympic events," said Peter Collins.

About Forestry Research Associates

Forestry Research Associates is a research and advisory consultancy that focuses on forestry management, sustainability issues and forestry investment around the globe.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
Tel: (206) 316 8394