Timber Appraisals and Financial Analysis
If you are considering maximizing the value of your forestland we would like to talk to you. Future Forest Consulting, Inc. manages and markets forest properties to investment groups committed to sustainable forestry practices. Marketing involves careful preparation, by identification of all asset values, analysis of timber and multiple use potential and financial modeling. Future Forest Consulting, Inc.’s credibility is high because we are “hands-on” Forest Managers.
The overwhelming trend in large parcel ownerships of forestland continues to be a shift in ownership from traditional paper and forest products companies to institutional timberland investors. As large tracts of forestland become fewer, the level of interest in larger parcels increases. Many farmers are adjusting their view on Forest Management in regard to enhancing the productivity and value of their total land use. Woodlots now are seen as a valuable asset worth properly managing.
Future Forest Consulting, Inc., in essence, is an investment adviser providing investment management services for these institutional investors in timberland. We manages timberland portfolios for corporate pension plans, not for profit organizations and retirement systems.
A unique feature of timberland investments is biological growth. It is unique because growth is highly predictable and is immune to economic events or market fluctuations. The importance of biological growth is magnified by the fact that, as trees grow and become larger, their value increases much faster than their size. Larger trees can be used to make higher-valued products that are considerably higher in demand. After a tree reaches sixteen inches in diameter, every inch of growth adds twenty to thirty percent in growth. A maximum growth and value criteria is eventually reached and many landowners do not recognize this stage of the cycle.
The outlook for timberland investors is attractive. Product supplies are decreasing, demand is increasing and prices are expected to continue to appreciate in real terms. Declining supplies are a result of competing uses for forestland, a lack of reforestation and public pressure to curtail timber harvest on federal lands. Higher demand for timber results from an expanding global market for wood products and a shifting emphasis to renewable resources. Increasing global demand for forest products is expected to continue, due to worldwide demographic trends.
The key element in the asset management process is adding value through intensive, hands-on management. We spend extensive time in the field reviewing properties and making decisions about management practices. Sophisticated analytical tools are used in asset management decision-making. Computer-based growth and yield models are used to analyze the timber’s economic maturity and to develop long-term harvest schedules for the portfolio. Harvest schedules are designed to optimize returns and meet other portfolio objectives, such as cash flow. They provide a long-term estimate of cash flows and portfolio values, and serve as guides for the timber sale portion of operating plans. Timber sale timing is continually reassessed as market conditions change. We monitor local stumpage markets closely in order to time sales for maximum income. Astute timber sale decision-making is one of our most important services, since income from asset sales is a large component portfolio return.
Future Forest Consulting, Inc. also offers high quality long-term Forestry Management, which will enhance and protect your forest’s health, value and productivity to non-industrial private forest landowners. Our management programs combine progressive silivicultural, land and business management practices to achieve client’s goals, such as investment return and asset appreciation, recreation enhancement and multiple-use management. We currently manage over 25,000 acres of timberland for both private and municipal clients. Superior stewardship of the forest resource is our primary land use ethic.
Future Forest Consulting, Inc. provides appraisals, timber cruises, long-range planning and complete advisory services on forest practices and land-use planning, as well as on-ground implementation of the best management practices.