The old saying ‘planting your money’ has a new meaning nowadays. Mature trees have become a popular way for people to invest in something green that will also see steady growth over the years.

As worries about climate change keep rising on the agenda, more and more people want to lend their support toward helping Mother Nature. Trees do great things, like taking up carbon dioxide and preserving wildlife habitats. They can even boost your property’s value over time. Plus, established trees are less work to tend than younger saplings.

So, if you’ve been mulling over mature trees as an investment, here are some tips to help you decide where to plant your money locally in quality, established trees.

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Choosing of Mature Trees

1. Choosing the Right Tree Species

There is a wide variety of tree species suitable for investments. However, not all will thrive equally in your local area. Carefully research native tree species that perform well environmentally and financially in your region. You can search for  mature trees for sale near me online.

Consider factors like precipitation levels, soil type, temperature range, and demand in timber/wood markets. Popular genera include oak, maple, walnut, cherry, etc. Avoid invasive exotic species. Get recommendations from local growers and forestry associations on high-value trees suitable for your location.

2. Assessing Tree Health and Age

When looking at mature trees for sale, carefully inspect each tree for signs of disease, pests, or other issues. Check for uniform green foliage, no holes/cracks in the bark, full, lush crowns, etc. Ask for details on pest/disease management practices followed.

It is also essential to confirm the tree’s age. Trees over 30-40 years usually fend off most biotic threats but are getting closer to the rotational harvest period. Young mature trees have longer to grow. Get an expert evaluation if needed.

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3. Take Account of Site Factors

The site on which mature trees are grown can heavily impact their growth. Consider soil moisture and drainage, topography, aspect, potential natural disturbances, etc. Trees in well-draining, moist soils on flat ground tend to grow faster.

Ensure access to the stand for inspection and harvesting is adequate. Check if the site complies with relevant forest certification standards. Site factors and soil quality determine tree investments’ risk and return potential. Invest time in comprehensively evaluating potential growing sites.

Purchasing of Mature Trees

1. Conducting Due Diligence

Research the tree seller’s reputation, credentials, financial stability, and past client feedback before finalizing a purchase. Check if the trees have the required planting permits and comply with local regulations. Request documentation on soil tests, site management plans, irrigation infrastructure, if any, pest protection practices, intended land use, and harvest schedule.

Ensure the purchase agreement appropriately defines your user rights as the tree owner. Carry out a physical site visit and walkthrough. Contract only with trusted growers following sustainable practices.

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2. Harvesting and Selling Wood Products

Mature trees must be harvested after reaching maturity, usually 25-40 years, depending on the species. Ensure your purchase contract outlines responsibilities, permits, and required timelines for harvesting, extraction, and selling wood products. The profits depend on the end-use of timber, including saw logs, veneer, poles, or biomass.

You can conduct harvesting independently or contract with professional loggers and transporters. Alternatively, some sellers offer buy-back options where they harvest the trees and share profits per pre-decided terms. Clarifying this upfront is important.

3. Tax Structure and Financial Returns

Depending on purchase structures like outright vs. lease models, tree investments may offer tax advantages like capital gains treatment, tax deductions, or credits. Consult your tax advisor to understand the implications. Evaluate the expected Internal Rate of Return (IRR) based on growth projections, timber prices, and other costs factored in.

IRR should be above typical inflation rates for a financially prudent investment. Purchase mature tree portfolios from reputed sellers offering transparent, research-based financial projections and harvest revenue estimates.

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4. Sustainable Forest Management

Opt for tree investments following sustainable forestry practices to preserve environmental benefits. Look for sellers certified by the Forest Stewardship Council (FSC) or Sustainable Forestry Initiative (SFI). Ensure long-term plans for controlled harvesting, replanting, invasive species control, wildlife habitat protection, and soil/water conservation are clearly defined.

Well-managed forests yield steady returns without degrading the land or biodiversity over successive rotations. Sustainable tree-growing portfolios offer feel-good green investments.

 

5. Maturity Vs. Growth Stage

The ideal growth and maturity stage balances value, risks, and returns. Young mature trees have time for growth, but returns may be delayed. Near-maturity trees fetch higher prices but have less flexible rotation lengths.

Consider the rotation length required by your investment goals and liquidity needs. Adjust timelines based on soil, climatic conditions, and species. Visit inventory at different growth stages to understand tradeoffs and align expectations with sellers offering varying maturity classes.

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Conclusion

Purchasing quality mature trees locally through extensive due diligence opens up an engaging way to invest in sustainable green assets. With careful research and contractor selection, mature tree investments can offer both environmental benefits and financial returns over the long term.