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September 17, 2013

Reasons to Invest in Timberland

I’m sure you’ve heard this long-standing saying: “Land—no one can make it.” The implication here is that land is a limited resource. Though limited, it is a resource that is in constant demand, especially as the population and commercial development expands.

As an investment, land offers individuals the opportunity to expand their portfolios with a solid income-producing asset. Sooner or later, purchased land will increase in value. Sure, it won’t do so in a predictable way like a cash savings account building interest, but it will grow in value eventually. As it does, you can use it. You can build on it, farm on it, hunt on it, log on it, and/or use it for recreational purposes. The uses are limitless and the economic advantages are strong.

Sure, you can purchase any land you desire and do with it as you fit, but I’m sure you want to discover wealth-building opportunities.

One such wealth-building option is direct investment in commercial timberland. In fact, timberland investment returns are equal to or better than other asset classes.

How Readily Available is Timberland?

Seven-Tenths of U.S. forest lands, or 514.2 million acres of the total 751.2 million acres of forest land, are labeled as timberlands. Timberlands are classified as forest lands used for the production of commercial wood products. Commercial timberland may be used for recurrent growing and harvesting of trees.

Many regions in the United States are especially rich in timberland. For example, the state of Alabama has the third most timberland acreage in the 48 contiguous states, coming in behind Georgia and Oregon. As far as private timberland acreage goes, Alabama comes in second behind Georgia. That being said, Alabama and Georgia are excellent regions to seek out timberland property.

Bottom-line: Timberland is an investment that is in continual demand due to population growth and the need for continued commercial development. As such, it’s a great money-making investment to consider.

AgAmerica offers financing of timberland for investment and/or recreation. Whether you’re looking at 1,000 acres of hunting property or 100 acres managed for pine production, AgAmerica is here to assist you. Contact us with any questions regarding our timberland loans, Alabama land loans, Georgia lands, and other ag loan products.

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