Forestry Statistics 2011 - Finance & Prices

Financial return from forestry investment

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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 forestry are produced annually in the Investment Property Databank (IPD) UK Forestry Index (not National Statistics). The index is calculated from a sample of 140 private sector coniferous plantations of predominantly Sitka spruce in mainland Britain.

The index shows a total return of 12.6% per annum for the three year period 2008 to 2010, and an annual return of 20.0% for 2010. This contrasts with the negative returns experienced earlier in the decade.

Table 8.2 IPD UK Forestry Index: Returns from forestry, 2001-2010

Period ending

Index (1992=100)

Annual % return

3 year return

(annual average %)

2001

110.5

-1.1

-5.1

2002

105.3 -4.7 -2.9

2003

106.7 1.3 -1.5

2004

116.5 9.2 1.8

2005

133.3 14.4 8.2

2006

160.7 20.6 14.6

2007

211.4 31.6 22.0

2008

226.2 7.0 19.3

2009 

251.4 11.1  16.1

2010

301.6 20.0 12.6

Not National Statistics

Source: IPD UK Forestry Index

Figure 8.2 IPD UK Forestry Index: Returns from forestry

Figure 8.2 IPD UK Forestry Index: Returns from forestry

Not National Statistics

Source: IPD UK Forestry Index

 

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