Invest in Forestry
Forestry is one of the most secure commodities in today's markets - tangible, safe and growing even in the worst financial climates. It's part of the perfect investment portfolio blend.
In managing €500 million worth of assets across Ireland and Panama, Green Belt can provide a full suite of services to private investors, family offices and institutional investors. Green Belt manages the entire life cycle of forestry and beyond, seeking to maximise the full potential from a forestry investment.
Frequently Asked Questions on Investment in Forestry
What is the typical term for forestry investment?
It can range from 10 years onwards. The options for investment can include semi mature forestry, within a vehicle such as Forestry Acquisition Consolidation & Timber (FACT), a stand alone forestry investment or a combination of the above.
What is the typical IRR from a forestry investment?
We realistically predict a 5% IRR for forestry investments. This is a tax free return, current rules applying.
What tax is paid on forestry investment?
PRSI and USC are paid on forestry harvesting returns. If you hold shares in a forestry investment, the transfer of shares is taxed, but the income derived from the occupation of commercial woodland is tax free. The forestry crop is not liable to CGT or to Stamp duty. Returns from the occupation of commercial forestry are tax free. Read more on the Taxation including Inheritance Tax in Relation to Forestry and Woodlands
Do I earn anything during the investment term?
Earnings from forestry thinning operations can be paid out as dividends. We can compile a structured forestry portfolio to provide regular dividends to investors.
What risks is my forestry investment open to?
There are risks from fire, wind and pestilence. These can be mitigated against but can still persist. Forest insurance is recommended and available through Green Belt Ltd. Economically, there are market risks but as timber is best stored on the stump, it can increase in value as the markets recover. With a strategic view of your forestry portfolio, Greenbelt can manage economic risk effectively.
Why is forestry the best investment?
- Low risk to return ratio;
- Biological growth is not impacted by economic factors, it is safe and reliable;
- Generally a negative correlation to stock market indices;
- Traditional risks can be avoided through professional forest management;
- A forest is a tangible asset which is a source of value creation;
- Irish timber has an incredible untapped value for the bioeconomy;
- It is becoming more valuable as Carbon Capture becomes more important.
Get in touch with Maurice Ryan, Green Belt's Investment Manager on Tel: +353 (0)87 675 3097
Green Belt have invested more than €28 million for farmers and investors into the above options since our incorporation in 1982. Our network of professional foresters located nationally are perfectly placed to source opportunities suitable for you and to manage your investment through to clearfell and beyond.