Figure 8.2 - IPD UK Forestry Index: Returns from forestry
The chart shows the annual return and three-year return (annual average) for the period from 1993 to 2014.
The annual return is negative in 1993, positive for the next 4 years, then negative for the next 5 years to 2002. The annual return then increases rapidly to peak at over 30% in 2007, before dropping to less than 10% a year by 2008 and then rising to over 30% by 2011, before falling to around 15% to 18% in the last 3 years.
The three-year average return gives a smoother time series, lagging the annual returns. The three-year average is between 5% and 10% a year in the mid-1990s, dropping to -5% a year around 2000. It then increases to peak at over 20% a year in 2007 and again in 2012 and 2013, dipping to around 15% in the intervening years.