Can a Forest truly be considered an investment?
Absolutely! A high quality, well-managed Midwestern forest can easily grow up to 400 board feet per acre per year, which equates to approximately $150 to $225 per acre per year. Management costs are minimal, as are holding costs especially if tax reduction programs such as the Indiana Classified Forest are utilized. Gains from forestland are not taxed on an annual basis, and income from timber sales can be timed to meet your financial or tax management needs, are eligible for Capital Gains tax treatment, and can be further reduced by correctly establishing a forest tax basis. Forestland investments are tangible and appreciate similar to most prudent land investments. Contact Bob Mayer for a few excellent past articles on forestland as an essential facet of any well balanced portfolio.
