How to Protect Your Timberland InvestmentBy Angela Smith, Communications Manager
October 01, 2021
Owning timberland offers tax advantages, flexible harvesting, favorable supply and demand and price stability.
Owning timberland can be one of the best investments you can make. It offers tax advantages, flexible harvesting, favorable supply and demand and price stability. So, if you just purchased some land with timber or are thinking of buying in the future, our partners at Realtors Land Institute have offered some tips for managing your investment.
Hire a professional. A land professional like a certified forester can work on behalf of a landowner to make sure their goals and objectives are met and help get an accurate value of timber in the current market. They can also assist in transactions for harvest agreements or a timber deed between a seller and buyer.
Figure out your objectives as an owner. What do you want to get out of your timberland investment? Are you expecting to generate income? Use for recreational activities like hunting or fishing? Conservation and wildlife management? Each objective requires a unique plan in order to reach these objectives or goals.
Create a land management plan. A land or forest management plan is important for any timberland owner. Key components of a plan include a property description, a property map, forest stand descriptions and management prescriptions for each timber stand over a time period, typically 10 years. Having a plan with a timeline can increase your chances of reaching your goals.
Know the risks. Owning real estate no matter what the type comes with liability and risk. Major risks to timberland include fire, insects, wind damage and disease. A forester or other land professional can help you manage those risks. You can also purchase liability insurance.
Reap the benefits. Owners of timberland can take advantage of many benefits like incentive programs and reduced property tax programs. Consult with your forester, local extension agent or local USDA Natural Resource Conservation Service to find out what programs are available to you. Another resource is timbertax.org.
United Country Real Estate has land professionals all over the country ready to help you protect your next investment. Visit www.UnitedCountry.com to find an agent near you and view all of our available properties for sale.