Replies to post #1602 on Investing in Timber

[fawtsc]

Cost of planting.

I deal in facts and I refer you to the FAO reserach in the subject:
http://www.fao.org/forestry/media/4602/1/0/
The next from page seven of the report:
"In Costa Rica the total cost of teak planting in June 1998 for the first year at 1300 plants/ha with two
weedings and fertiliser treatment was $US924. The estimated cost of establishing a teak plantation
with spacing of 3 m x 3 m without genetically improved seedlings was $US1052 and with genetically
improved seedlings was $US1150 for first five years (de Camino and Alfaro, 1998)."
The costs of land due to the fact that it reminds in the hands of TATF at perpetuity is accounted as rental for the period of the purchase of the trees. Still, buying trees from TATF, I learned too late, you pay as if you will buy the land.
The hectare density is around 1100 1300 units the cost of land for planting like the TATF farms in Costa Rica go for around $500 to $3500 hectare now if you are looking for prime plantation land that can go as high as $10000 hectare if you want ocean/water views (for example not far from one of TATF plantations: http://costarica.inmobiliaria.com/ficha_terreno-rural-la-cruz-venta-F202046.htm) Run the numbers and let us know.
Anyone who knows a little Costa Rica will tell you that TATF plantation land is not all prime, mostly is hyper exploited prime forest or cattle farmland that sells at discount and mostly marketed to be use for reforestation.
Remember Steve and Sherry were very successful Realtors for 20 plus years in Costa Rica and one of the bests. Reason why I got involved buying trees in their TATF endeavor.

More later......