Wednesday, February 28, 2018

Tree Farm Typical Financial Return


Tree Farm
Typical Financial Return
35 years to Final Harvest
$2,100 an acre 
1% Annual Land Appreciation

Inputs


Tons
Pulp ChipNSaw SawTimber
$ Thinning #1 251
30
100% 8.35 0% 17.06 0% 23.99
$ Thinning #2 438
30
40% 8.35 45% 17.06 15% 23.99
$ Final Harvest 1,914
85
5% 8.35 10% 17.06 85% 23.99
















Input


Results

Purchase Price 2,100



A Ld Apprec  1.0%
IRR
2.60%

































Timber Per


Timber Taxes Insurance Other Cash Flow Acre
0 2018 0


       (2,100)     2,100
1 2019 -200       (3)               (1)           (1)            (205)     2,121
2 2020 0       (3)               (1)           (1)                (5)     2,142
3 2021 0       (3)               (1)           (1)                (5)     2,164
4 2022 0       (3)               (1)           (1)                (5)     2,185
5 2023 0       (3)               (1)           (1)                (5)     2,207
6 2024 0       (3)               (1)           (1)                (5)     2,229
7 2025 0       (3)               (1)           (1)                (5)     2,251
8 2026 0       (3)               (1)           (1)                (5)     2,274
9 2027 0       (3)               (1)           (1)                (5)     2,297
10 2028 0       (3)               (1)           (1)                (5)     2,320
11 2029 0       (3)               (1)           (1)                (5)     2,343
12 2030 0       (3)               (1)           (1)                (5)     2,366
13 2031 0       (3)               (1)           (1)                (5)     2,390
14 2032 0       (3)               (1)           (1)                (5)     2,414
15 2033 251       (3)               (1)           (1)              246     2,438
16 2034 0       (3)               (1)           (1)                (5)     2,462
17 2035 0       (3)               (1)           (1)                (5)     2,487
18 2036 0       (3)               (1)           (1)                (5)     2,512
19 2037 0       (3)               (1)           (1)                (5)     2,537
20 2038 0       (3)               (1)           (1)                (5)     2,562
21 2039 0       (3)               (1)           (1)                (5)     2,588
22 2040 438       (3)               (1)           (1)              433     2,614
23 2041 0       (3)               (1)           (1)                (5)     2,640
24 2042 0       (3)               (1)           (1)                (5)     2,666
25 2043 0       (3)               (1)           (1)                (5)     2,693
26 2044 0       (3)               (1)           (1)                (5)     2,720
27 2045 0       (3)               (1)           (1)                (5)     2,747
28 2046 0       (3)               (1)           (1)                (5)     2,775
29 2047 0       (3)               (1)           (1)                (5)     2,802
30 2048 0       (3)               (1)           (1)                (5)     2,830
31 2049 0       (3)               (1)           (1)                (5)     2,859
32 2050 0       (3)               (1)           (1)                (5)     2,887
33 2051 0       (3)               (1)           (1)                (5)     2,916
34 2052 0       (3)               (1)           (1)                (5)     2,945
35 2053 1914       (3)               (1)           (1)          4,884     2,975

















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