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Forestry Statistics 2014 - 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, available at www.ipd.com/OurProducts/Indices/UnitedKingdom/UKForestry/tabid/1012/Default.aspx. The index is calculated from a sample of around 150 private sector coniferous plantations of predominantly Sitka spruce in mainland Britain. The IPD UK Forestry Index is outside the scope of National Statistics.

The index shows a total return of 22.2% per annum for the three year period 2011 to 2013, and an annual return of 15.8% for 2013 (Table 8.2).

Table 8.2 IPD UK Forestry Index: Returns from forestry, 2004-2013

Period ending

Index (1992=100)

Annual % return

3 year return

(annual average %)

2004

116.5 9.2 1.8

2005

133.3 14.4 8.2

2006

160.8 20.7 14.7

2007

211.5 31.6 22.0

2008

226.5 7.1 19.3

2009 

251.9 11.2  16.1

2010

304.2 20.8 12.9

2011

404.3 32.9 21.3

2012

479.6 18.6 24.0

2013

555.5 15.8 22.2

Source: IPD UK Forestry Index

These figures are outside the scope of National Statistics

Figure 8.2 IPD UK Forestry Index: Returns from forestry
Figure 8.2 IPD UK Forestry Index: Returns from forestry

Source: IPD UK Forestry Index

Note:

1.  Data collected for the IPD UK Forestry Index started in 1992

These figures are outside the scope of National Statistics

Links to Forestry Statistics 2014