Land Investing, Land Banks BPR ReV4US
- THIS DOC Land Investing, Land Banks
- SEE Lumber Industry
- SEE Home Materials, Furnishings
- Scr Geo-Politics
- Land Use implications - all about the water!
Land Use implications - all about the water!
Desert, Wildlife - little use, lots of restrictions
Many of the farmers and tree growers end up having to sell some of their thousands of acres near the Florida line, likely to hobby farmers—doctors and dentists from Big city dudes eg Jacksonville, FL more interested in outdoor recreation than turning profit on timber.
If I’m not sustainable, I can’t keep that land,” he said. “Everything is going up except the price of timber.”
Lumber Growing Trees
Growers Hurt by Over-planting, Don't See Bump amid Lumber Boom
However, timber growers across the U.S. South, where much of the nation’s logs are harvested, have gained nothing from the run-up in prices for finished lumber.
The problem for timber growers is that so many trees have been planted between the Carolinas and Texas that mills are paying the lowest prices in decades for logs.
Pine trees are fast growing need little tending as compared to intensive investment and labor needed for cotton or peanuts.
Incentives. Plus, the federal government was paying landowners to plant trees. Forestation initiatives meant to stop erosion and lift crop prices, such as the Conservation Reserve Program, promised annual payments for every farm acre planted over with trees. The payments and restrictions on logging expired around 2000, just in time for a housing boom that pushed timber prices to highs.
Lumber Property Taxes. A huge issue eg for FL is with 10,000 acres is $55,000 or $5.5/year-acre for property taxes. It might take 10-20 years to grow a tree that means say only 5-10% of the land can be "used" to produce income per year. Farmers who want to preserve the forest for their own scenic pleasure, wildlife, etc. might push out harvest rate. In an era where land prices have gone up a lot along with property taxes, the growers are counting on fast growing pine trees for income and as a way to hold on to family land. harvests only a small portion of his timber each year, but has to pay taxes on every acre.
Cost of Logging. As sawmills get further away from land, and tree prices are low, often loggers have turned down jobs.
Cost of Restocking once Clear Cut. Farmers in the past wanted restock for the next generation the 10,000 acres of loblolly pine he manages for their family. The problem is that trees weren’t cut with urgency when prices were high - waiting for more gains. But now in 2021 tree they are so low, and the nearest mill so far (as many closed down).
Surplus of Trees. The surplus of standing pine is such that growers, foresters and mill executives expect that even with mills sawing at capacity and new facilities coming online, it could be another decade, maybe two, before enough trees are felled to balance supply with demand. It’s a buyer’s market for logs down South. - WSJ
The average price of timber sold to lumber mills rose to $24.03 a ton in 2020-Q4, little help to pine growers as it is the same price as in 2012, when there were half as many homes being built, let alone C19 premiums.
Carbon Offsets a Market - Pine Straw? Some tree growers see the potential to sell standing trees into the booming market for carbon offsets, which would pay him not to cut. Some have been planting longleaf instead of faster-growing slash pines, aided by federal habitat restoration programs. When the subsidies expire, the foot-long needles can be raked, baled and sold to garden centers and landscapers. “The salvation for me has been pine straw,” he said. An acre can annually produce more than $300 worth.