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Spring / Summer 2019
Aspects of Land
BRITPIK / ALAMY, SHUTTERSTOCK
England
1.3
m ha
Wales
0.3
m ha
Scotland
1.45
m ha
England
and Wales
£14
k
North
Scotland
£4
k
Average forested land values
(per hectare):
£3
k
-
£4
k
Price per hectare paid for land
bought for planting in Scotland
Forested areas:
£50
-
£70
Price of softwood per tonne,
standing
£3
-
£10
Price of milling-grade hardwood
per hoppus foot
£40
-
£70
Price of hardwood for burning
per tonne
throughout the UK. Scotland is on
target to meet its aim of creating 10,000
hectares each year (12,000 from 2020).
In England, the Government’s ambition
to plant 11 million trees before 2022 looks
wildly ambitious. In 2017-18, just 1.6
million trees were planted.
Those keen to profit from forestry
themselves could either buy land that is
already established as commercial forest,
or plant their own.
Forest prices are closely linked to local
timber demand: proximity to a sawmill or
biomass plant, for example, enhances a
forest’s value. Although, as James points
out: “Today’s high timber prices justify
transporting wood further, so location is
less sensitive than it was.”
For new planting, however, location is
still crucial and it dictates what trees you
can plant. The poorer the land quality, the
fewer species are suitable. Most investment
woodlands are dominated by spruce, a
fast-growing, broadly adaptable conifer
with good timber qualities. When designing
new woodlands, it’s important to consider
how future changes to weather patterns
are likely to affect species choice.
Grants for creating new plantations
vary. In Scotland, Forestry Grant
Scheme funding is quite straightforward,
supporting nine woodland creation
models and for all but the smallest
woodlands, grants broadly cover the
costs of planting and establishment. In
England the Government’s increasing
emphasis on ecological targets, angles
grants towards the creation of woodland
to improve biodiversity and water quality,
and support carbon storage.
Over the next few years alternative
sources of funding are likely to become
available through the climate change agenda
and corporate social responsibility. “It is not
inconceivable that projected high future
timber prices could help make the case for
timber forests whether grant-aided or not,”
says James. “In any case, with a buoyant
transactional market, strengthening
timber prices and strong Government
support, forestry provides plenty of
reasons for the investor to be cheerful.”
n
To find out more about investing in forestry,
contact James Adamson, Perth, 01738 477 510,
james.adamson@savills.comIN FIGURES
Central
Scotland
£10
k
South
Scotland
£11.5
k
Average
£15
k
Prime