Financial return from forestry investment
Returns to investors in forestry are made up of sales of timber (standing or felled), sales of other goods and services, increases in the value of the woodland (from annual increment or market factors), and the net income from subsidies (e.g. planting grants) less taxes. The investors' costs are made up of employment costs and other purchases.
Estimates of the overall return from commercial Sitka spruce plantations are produced annually in the Investment Property Databank (IPD) UK Forestry Index (not National Statistics), which is calculated from a sample of private sector plantations in mainland Britain.
The total return from investments in forestry in the three year period 2006 to 2008 is estimated to have been 19.3% per annum. This continues the recovery from the negative returns of earlier years. The annual return for 2008 is estimated to have been 7.0%.
3 year return (annual average)
|per cent per annum|
Not National Statistics
Source: IPD UK Forestry Index