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Buying Land and Planting Forestry as An Investment. Viable?

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  • 11-04-2024 6:29pm
    #1
    blobert
    Registered Users Posts: 1,499 ✭✭✭


    Hello,

    I'd looked into this about 4/5 years ago and at the time it seemed the only way of making a decent return on forestry was if you owned the land already. It seemed as though all the cheapest available suitable land (in cheapest areas like Leitrim/Donegal etc) was priced based on forestry grants, ie it was more far expensive than it would be if forestry grants were not an option.

    I see that the grants have improved a bit in the last year or two but am wondering if this is enough to make it a useful investment. I see there was a British investment fund looking to do this at scale but I did not see others coming into the space: https://www.breakingnews.ie/ireland/explained-controversial-coillte-deal-with-british-investment-fund-1421271.html

    So I was wondering if people think there is an opportunity here? I'd be looking to buy 100+ acres of land and plant this. I'm not sure if there's advantages to doing one big plantation vs several smaller ones, I'm guessing the one bigger one is easier for later felling.

    I'm guessing also a lot of the returns are based on future timber values which are unknown, while I can work out the return based on price of the land and the grants the future timber price is less certain.

    Any thoughts on this would be much appreciated.

    Thanks in advance.



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    #2
    blue5000
    Moderators, Society & Culture Moderators Posts: 12,659 Mod ✭✭✭✭blue5000


    Probably cheaper to buy clear felled forestry land, but there won't be a grant to plant it. One of the drawbacks is that you will only be allowed plant 65% of it in spruce, rest has to be broadleaves.

    On the plus side it might already have roads and fencing, that just need repairs instead of starting from scratch.

    If the seat's wet, sit on yer hat, a cool head is better than a wet ar5e.



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    #3
    victor8600
    Registered Users Posts: 1,637 ✭✭✭victor8600


    https://www.boards.ie/discussion/comment/122042658#Comment_122042658

    This is very interesting, though I don't understand — there is no grant to re-forest a clear felled land?



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    #4
    $kilkenny
    Registered Users Posts: 718 ✭✭✭$kilkenny


    https://www.boards.ie/discussion/comment/122180110#Comment_122180110

    By the time you buy grassland that you can claim grants on, you could buy clearfelled land, plant it, maintain it and have a crop of trees for half the value of the grass land.

    Added bonuses being roading will already be installed from the pervious harvest and the major one, no input or meddling from the Department on what you can, cannot plant and taking forever to plant some trees.



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    #5
    Good loser
    Registered Users Posts: 3,196 ✭✭✭Good loser


    https://www.boards.ie/discussion/comment/122180110#Comment_122180110

    That's correct. Virgin land for planting costs €6000 plus per acre. While clearfelled land can be bought for about €2000 per acre.



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