The merits of Forestry as an investment
WHY FORESTRY?
THERE is nothing new in Forestry as an Investment choice. During the early 1980 huge volumes of land were planted for a range of private investors, many of whom were farmers looking to invest outside the core farming enterprise, while still within a sector that they were comfortable with. These investors are now reaping significant returns through sale of a very valuable timber crop. This same principle applies today, with added benefits of a much improved Afforestation Scheme making for better quality plantations and most important of all, excellent returns from a stable Investment.
HOW DOES IT WORK?
VERY simply, the investor approaches SWS Forestry to discuss things such as amount of money to invest, geographic location, quality, etc. SWS can then connect the Investor with a suitable parcel of land for purchase and arrange for it to be planted, availing of the State Funded Afforestation Grants which in most cases will cover 100% of the costs associated with planting the land and maintaining the plantation for the first 4 years until it reaches free growing stage. After that it’s a case of watching your Investment grow.
WHO CAN AVAIL OF THE AFFORESTATION GRANTS?
THE new forestry program doesn’t differentiate between farmers and non farmers so anyone with a lump sum on Deposit looking for a better alternative or someone with a good credit history can potentially buy a block of land, arrange for it to be planted availing of the grants and draw down a tax free premium. If planted with Sitka Spruce, the crop of choice for commercial forestry investment, the annual premium (tax free) will be €206 per acre for 15 years, or 4.60% on initial investment. They will retain full control over their investment as they are outright owners of the land. SWS will stay involved with the investor from start to finish; from seed to saw dust.
WHERE CAN SOMEONE GET LAND?
LAND can either be sourced directly or through the likes of SWS Forestry who operates a nationwide network of local, professional & experienced foresters. They will identify suitable blocks of land tailored to suit the requirements of individual Investors and arrange a deal either directly with the landowner or through an Auctioneer.