Why You Should Buy Young, Cutover Forest Land

[@thetimberlandinvestor]

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[@thunderusnight]

Nothing better to watch after a long work day than your awesome informative videos! I'd love to see a video on a noobs guide to timber investing, what's profitable, how to make money from it, and what to look for in land. Thank you very much, I definitely plan on using some info from you one day when I can afford my own wood lot!

[@jefff6167]

Thank for taking the time to create such great content. Another very entertaining and informative channel is “Wilson Forest Lands”.

[@RalphNeill-on3ny]

Standing tree value. My pine plantation is in east Texas. prices for logs and pulpwood have been low for years while lumber prices were at all time highs. It all comes down to supply and demand. After the housing crash of 2009 demand for lumber tanked. Loggers and sawmills went out business. The trees kept growing. Lumber demand returns and the fewer remaining sawmills and loggers can name their own price, but after a few years of low harvest there is an excess of trees needing harvest so competition drives the price down. This made worse by the government giving at least a 50% subsidy to plant trees. I do not fault sawmills and loggers for taking advantage of this windfall. It's capitalism and the American way. Lumber and trees are different commodities and each finds it's own price through supply and demand.

[@CentralMississippiWhitetail]

It's sad what has happened to the pine crop. 30 years of managing a product that wont pay its way out of the woods

[@toddyuill3924]

Great topic i too enjoy tsi even as they are logging our property as we speak there are lots of places in need of tsi its a never ending job and a large property

[@billywalker9223]

I have trees from two feet tall to 7' in diameter. The varied size sustains wildlife and responsible harvesting. The government pays to have habitat for birds and mammals. Look into it.

[@TomBTerrific]

Good analogy regarding aim and ability to control your final yield the further out you end game may be. However what you don’t know 30 years from now is what the market will be is much more uncertain the future you forecast out also.

[@thetimberlandinvestor]

Yes, The further you go out, theoretically the more discounted cashflows are because of the increased risk (I'll cover this more in detail in a different video, as it can get pretty complicated), but here I wanted to convey the opportunity for arbitrage--the idea that high value ground may be overlooked and undervalued simply because it lacks mature timber.

[@TomBTerrific]

I totally get it. Unfortunately my age (73) albeit not having any affects on growth, planning or future markets. I sometimes am surprised that land owners will clear a property of trees, invest nothing totally depending on nature regrowth. Yet ask prices as if the property still had values in standing timber. Im really new to forest management although in my youth I worked in a few mills in Montana and Oregon. What I see here in the south is the focus on pine tree regeneration. I f someone is taking the long view I would think exotic and hardwoods would be better choices. Even bamboo. Mostly because there is less competition. I would not exclusively go in one direction but having options is nice. At my age however most of what I do will be legacy building.

[@burtonkent4549]

​@@thetimberlandinvestor I don't think arbitrage means what you think it means. Check the definition. Your point that it may be a better investment than more mature timber is still very valid though.

[@Mindokwin]

Buy just before the stand moves into a more valuable size class. Buy a sapling forest just before it becomes pulpwood size. Buy pulpwood size just before it grows into sawtimber.

[@ForestHogOutdoors]

Another great video, thank you for the info. Just joined your E-mail subscription and downloaded your book. Keep up the good work. If you ever find yourself out to Western New York, l would love to have you take a stroll through my woods. Lots to learn.

[@thetimberlandinvestor]

Thanks! I'll keep that in mind, as I very well may be out there someday.

[@CentralMississippiWhitetail]

Thanks. I'm gonna get your book.

[@derrickp]

Big factor is age of the individual, if you are middle aged buying a young stand may mean only 1 or 2 harvests in your lifetime

[@davidhickenbottom6574]

Exactly I'm late to the party at 61, but have Been working on my wood lot for 6 years amazing to see how it changes. I tell my kids to come back after I'm gone whenever that will be. I've put my mark on this land. The wildlife the song birds all love what I've done. It's a labor of love.

[@TomBTerrific]

@@davidhickenbottom6574i think it’s important to also bring your kids into your vision. Im 73 my son is 50. I would love to team with him but he doesn’t seem to have any interest.

[@jcm3301]

Thanks for the really nice video and different perspective on this. Does it matter how old the investor is in looking at cutover land? If you are 45 years old and need some money in 15-20 years, perhaps best to only look for somewhat mature forests?

[@justincase3108]

“Everyone wants big wood”, I thought this too but my wife says otherwise. She says what is most important is how you manage the wood you have. And I think I’ve experienced it is easier to manage young wood. And to your point, old wood is what it is and won’t change unless or until it is cut. See what I’m saying there? 😉

[@L46C3]

[@robertanderson5092]

Lol

[@phillipsmith21]

I've got 10 acres on my place that was clear cut. I am planting Black Walnut, Black Cherry, and Pecan very densely and will be thinning as they get a little larger. I'm curious how dense I could initially plant before it creates an issue?

[@thetimberlandinvestor]

It would be difficult to plant too densely. Hardwoods benefit from growing more densely when young, as it discourages branches and encourages the formation of a straight, clean stem. As the trees get older, you can (and should) always thin as you say.

[@phillipsmith21]

That's what I was thinking. I'll probably never see it, but this should make some great veneer trees for my kids.

[@L46C3]

Are these trees you're planting a good pick for your soil, temps, humidity, etc.?

[@spilledit]

I eat trees

[@Dollapfin]

Your analogy is really bad