Biological tree growth, which is unaffected by the economy and invariable positive, is a unique feature that sets timberland apart from other asset classes.
Biological growth has a compounding effect in both volume and value. First, biological growth provides increasing total volume of wood. Trees, on average, can be expected to grow in volume approximately 2-8% per year, depending on location. Secondly, as diameter increases, the trees become disproportionately more valuable, with large diameter trees being disproportionately more valuable than smaller ones.
|Products||None||Paper, Particle Board, Wafer Board, Diaper Fill, Chemicals||Dimensional Lumber:
1x4s, 2x4s, 4x4s, etc.
2x6s, 2x8s, 2x10s, 2x12s, etc.
|Telephone Poles, Wide Boards|
|Minerals||Oil, Gas, Brine, Coal, Sand, Iron Ore, etc|
|Other||Hunting and Recreational Leases, Pine Straw, Maple Sugar, etc.|