Opportunities Ahead

In October of 2018 the Wall Street Journal published a story titled “Thousands of Southerners Planted Trees for Retirement. It Didn’t Work.” We received calls about this article, and it came up in just about every conversation for weeks. It touched on the general concern of carrying an investment for 25+ years and that investment not panning out. While it had valid points, I believe it stoked the anxiety of landowners a little too much and painted a small, negative picture of being a timberland owner.

It’s true, in 2019, ten years after the recession started, we’re still feeling the effects of the housing crash. This has been the lamentation of landowners and consultants for a decade. But, there have been many changes in that decade to signal an eventual shift for the South. With the occurrence of Mountain Pine Beetle in the North, companies have placed much more investment and production in the South. This, accompanied with the highly productive pine plantations and developed supply-chain we provide, means we have a great place for mills to do business. 

So, what does this mean for landowners? Well, according to Forest 2 Market’s recent story, 

 “…with such a dramatic increase in overall demand, stumpage prices will inevitably rise across the US South, especially in areas with lots of added capacity. We’re already beginning to see increases take effect in some products.” (blog.forest2market.com)

I tend to agree with F2M’s assertion. The timing and measure can’t be determined, but we are well positioned. I believe that the efficient, sustainable, and dependable forests and markets we have cultivated in the South will continue to make this an attractive area for lumber producers and a great place to be a landowner. 

Forest 2 Market’s full story can be seen here.

The link to the WSJ story can be found here.

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