What risks are associated with buying timberland?
Like the Stock Market, there are fluctuating prices (the market), and they can affect the ability to accurately predict the value at any given time in the future. Next, there are weather concerns such as ice storms and tornados. Finally, the buyer must consider the threat of insects, disease and forest fire. However, John Hancock’s Timber Resource Group states on their web site “…less than 0.5% of commercial timberland (in the United States) owned by institutional investors has been damaged annually by fire, insects, disease and other natural hazards…” www.htrg.com.
