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Investing In Land - Value of Trees

investing in land - value of trees

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Published date:

November 18, 2014

Last updated date:

November 18, 2014

By Manny Manriquez

Investing In Land - Value of Trees

Sometimes you look at the trees on land you are thinking of buying and you see beauty. Sometimes you look at trees on the land you are thinking of buying and you see dollar bills. Just how much are those trees worth anyway? You will need a qualified forester to give you the best estimate. What are some of the things he or she will be looking at? Types of Products that Can Be Manufactured from your Trees. Different species of tree yield different products. the most familiar wood-based products are pulp and timber but trees can be valued as biomass, utility poles and cabin logs as well. Fast-growing trees like aspens are valuable for pulp while slow-growing hardwoods like oak and cherry are prized for their timber. Among sawtimber species such trees as black walnut and sugar maple are often more valuable depending on the quality of the grain. While size is critical, larger trees may not always bring the highest cash return. Certain red pines, for example, may be ideal for converting easily into utility poles after harvesting while taller cousins may require extra milling. Grade. A forester will measure the value of an individual tree by giving it a grade. Key factors are the potential amount of clear wood as determined by the amount of defect-free length and diameter of the butt-log (the first log cut above the stump). Defects that will knock down a tree's grade include decay and fractures in the trunk and knots from branches. Volume. A forester will be able to estimate how the different parts of your trees can be converted into various forest products. A single tree can produce more than one category of product and the volume is the total of all those products. Who Will Buy My Trees? The most useful knowledge a skilled forester can bring to the evaluation of a wood lot is information on the current markets for trees. Is the market for wood pulp saturated at the moment? You would be best served delaying harvest if that is the case. Perhaps there is a shortage of premium wood for baseball and cricket bats and you may never get a better price for your ash or maple trees even if they may not have reached full maturity. Because, in the end, how much is a tree worth? Whatever someone is willing to pay for it.
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