Forestry - look to the future return
the longer game, considering the trees an impediment to future management options.
However, that woodlot ultimately paid a handsome dividend to its new owners.
Because farm forestry is such a long game, returns can fall short when owners lose their nerve and sell before the tree reaches optimum maturity.
Over a 25 year cycle, as long as trees are properly cared for, independent analysis shows net returns for farm forestry are way ahead of dairy, beef or sheep.
As the world faces a future forest famine, planting a tree is a
‘‘As dairy prospects continue to improve, buyers are likely to gain confidence.’’ Paul O'sullivan
wise step to create a legacy.
Your grandchildren will thank you for your wisdom.
Paul O’sullivan is Bay of Plenty and Central Plateau Real Estate Manager for PGG Wrightson Real Estate Ltd.
Since he began his career in real estate in 1978, he has negotiated sales in excess of $850 million worth of properties, including dairy, sheep and cattle, forestry, waterfront and agriscience projects.
Data from the REINZ showed rural property buyers coming out to purchase properties in spring.