Timberland: A Solid Investment
In today’s economy investing can be risky business, and it can be hard to tell what a good investment might be. Timber, the number one industry in the state of Alabama, is a safe investment for those looking to purchase land in Alabama.
Timberland investment offers several opportunities for seeing return on investment. Timberland investment will be found in two major types of trees; hardwood and pine. Pine and hardwood timber have several practical uses. Hardwoods grow well on creek banks and in wetter soil. They can be planted to prevent erosion and later harvested for timber. While pines thrive in dryer soil; both types of soil can be found in the timberland tracts in Southern Alabama.
Investments in timber produce a high rate of return over a period of time.
Though pine is faster growing, and might reap more return on investment in the short-term, hardwood is also a great investment. Pine pulpwood, chip-n-saw, and log represent trees in the 10-20, 20-25, and 25+ age groups, and are all profitable in the timber industry as they are used to make paper products and housing lumber. Hardwood is also a lucrative investment in the timber industry as it is largely used in the housing market to build homes, hardwood floors, and furniture as well as cross ties.
Investing in timber can produce high returns in relation to the low risk they carry. Oftentimes, land can be purchased for recreational use (hunting, fishing, etc.) and the landowner will see a return on investment in the trees that are growing on the land 10-15 years down the road. In as few as 13-15 years good soiled trees will be ready to use as pulpwood which has gone for as much as $90/acre in the industry.
