While often overlooked, investing in timber can be just as profitable as investing in tillable farmland.
Timber offers a unique way to diversify an investment portfolio and offer generational income. But, to gain the benefits of timber, it is crucial to manage it correctly.
The first step in timber management is to take an inventory of the forest. This should be done if you are considering purchasing a forest or if you are evaluating a forest that you already own. When evaluating a forest, take inventory of the types and quantities of each tree, tree size, and the health of both the individual trees and forest as a whole. After this, develop a plan that outlines the long-term goals for your timber.
When it comes to harvesting timber, there are several different sustainable techniques that can be used, such as selective harvesting, clear cutting, or shelterwood cutting. Managing tree growth is another important aspect of timber management. Practices may include selecting appropriate species for your climate, soil types, and program goals, as well as physical efforts through pruning and thinning to improve timber quality.
Timber can be a long-term investment. This means that, in addition to the timber itself, you will want to pay attention to the environment as well. Have a plan in place to minimize soil erosion and to protect any water resources after harvesting. You will also want to monitor for pest and disease issues. If an issue arises, it is important to handle it quickly and efficiently to minimize damage to the timber and overall forest health.
Another factor related to the forest when managing timber is wildlife. As the forest grows and develops, numerous species of wildlife may make your forest their home. When harvesting, take this into consideration and make informed choices on harvest type to ensure minimal disruption to these habitats.
Lastly, when managing a timber forest, you will want to know your options in the market. Take time to research costs associated with harvesting, transporting, and processing the timber to help you maximize your potential. It is also important to look at the market prior to harvesting to determine if it is the right time to harvest, what type of timber to harvest, and where to sell the timber.
If timber management is of interest to you, and you would like to learn more about it, contact our recreational and farmland specialists to learn more. Our team can answer your questions and help you begin your timber management journey.
About Hageman Realty, Inc.
Hageman Realty represents trust, knowledge, and excellence. Since 1976, Hageman Realty has been earning your trust in buying or selling farmland, land transitioning, farmland management, recreational consulting, or generational planning. Growing from our family’s history, we have continued to build on that foundation with our passion, hard work, professionalism, and forward-thinking that continues to set us apart. Land is more than just our passion; it remains our livelihood, our way of life, and represents our future. Our seamless process and extensive expertise allow our clients throughout Illinois, Indiana, Wisconsin, Arkansas, and Texas to get everything they need, all in one place. Contact our team today at (219) 261-2000 to learn how our team can assist you in your land buying or selling needs.
