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OUR INVESTMENT PROJECTS
Trees4Good offers a range of investment opportunities through different share class options, in the plantation, cultivation, and harvesting of trees for timber production, wildlife management, and ecological restoration. Join us in our mission to cultivate a brighter, greener future by investing in our projects.
Tree Planting Process & Varieties of Trees
Within the UK, there is a great deal of forestry for sale, from small packets to large estates. The Forestry Commission (FC) has helped to establish a robust industry infrastructure, including enhancing industry standard methods, measures, figures, results, scientific works and empirical studies.
There is a greater amount of Government and charity interest in replanting with native species, namely broadleaf or deciduous; however, conifers still attract funding, and remain the preferred, harvested commercial crop.
Revenue streams from forestry are recognised as being under exploited, e.g. leisure, trekking, walking, sporting, outdoor events/courses.
Planting has been generally mixed over the last 40 years – 10-20% Broad Leaf, (BL) and 80-90% SWCT. This is changing in favour of BL as Government support, i.e. incentives and grants increase for BL, and charities are keen to replant only with native BL, this includes some conifer, E.g. Scots Pine.
Structurally, the industry falls into three strategic areas –
i Land acquisition and planting, then early maintenance.
ii Management – Pest and disease control, thinning, wind blow.
iii Harvesting – Sitka Spruce is the most common planted tree.
Most grants fall under (i) above. This has resulted in a distinct business focus upon this point due to cash flow and quick returns upon capital committed, particularly in comparison with ii & iii.
A popular type of tree we would look to purchase could include Sitka Spruce.
- Singled out as 50%+ of commercial forestry, more given derivative types.
- Grows well in UK climate.
- Produces commercial yields at higher altitudes, best up to 500m.
- UK disease resistant
- Established knowledge and data.
- Commercial life 20-50 years,
- wide range of uses at different ages/development
- Consistent yields
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Note - Sitka Spruce is given as an example only. Other species may be planted for diversity, including native broad leaf which may attract the best grants available.
SITKA SPRUCE – Specific Technical Data
- Following based upon a 40-year-old Sitka Spruce
- Subject to moderate thinning – from 5000+ saplings, to 2600 at 40n per Haπ
- Standard metrics and methods assumed
- Price used is per m standing & over bark, weight varies too much to include here
- Trunk ONLY is assessed here, no income from trimmings or stump assumed
- Form for trunk assumed 40% of trunk at DBH (1.3m) height x top height less 1m
- Calculations assume Archimedes principles πr² and are not proven by Calculus
- Assumed net height is 20m
- Diameter assumed at 32cms including over bark
- Price is approximate last 5-year average at £36 per m³
- Current price is around £31 per m³ (May 2024)
- Prices of various classification of soft wood conifer timber – SWCT – can vary considerably from year to year.
Thus –
Area of trunk at 1.3m* ~ 800cm² (After Diameter of 32 ÷ 2 = radius of 16, then, πr² for area of a circle).
Then, 800cm² x Height of 20m = 1.6m³ Volume x 40% for form (Tar of tree)
Gives a total nett volume of 0.64m³ (per tree x 2000 trees gives ~ 1,280 m³ per Ha
1,280 x £36 per m³ = £46000 approx. per Ha – Gross, Standing, Over bark.
Note: Roadside Sawn Soft Wood small trunk £54 per m³ gross, no trimmings included.
Note: The above, though based upon real data, assumes a great deal, and should NOT be relied upon or taken as any guarantee. Assumed measurements are FC standard, E.g. * Trunk at breast height is 1.3 metres assumed standard.
Generally – To obtain favourable purchases for forestry, it is possible different, yet related, investments will need to be made. The most likely are Peat Bog Restoration, (PRn), amounts towards installing/maintaining infrastructure such as tracks, firebreaks and drainage, signage, fire prevention, and other safety protocols.
PRn will take up the most land and initial investment of this expenditure, however, once in operation the maintenance is low. Returns will chiefly come from carbon capture/restriction of emission credits, the added benefits are mainly environmental which, financially, offer little by way of return.
PRn is a very long business to completion, usual estimates put full credit earning potential of up to 95 years. PRn will have close to zero value in early years. Over time the earnings can be very substantial – we would say that this will not produce much return if any in the subscriber’s lifetime.
It is impossible to say here exactly where, when, and how much, if any, PRn will need to be purchased, it is NOT the primary aim of T4G which is forestry.
The other items referred to above, should be considered as necessary contributions towards enabling maintenance and recovery of timber, as well as health and safety, and an income producing necessity, E.g. Amenity access, Adventure, Sporting.
There are substantial grants available for PRn from Government, Government related bodies, and charities. The last will happily assist with advice, knowhow, and initial phase expertise, The grants available for PRn do not usually affect or restrict those available for forestry even on same land.
PRn occurs, subject to sale/availability, throughout the UK. The industry is most advanced and available in Northern Central, and Northern Scotland.
Ready to get started? Contact us here:
Trees4Good
6 The Courtyard, Holding Street
Rainham, Kent
ME8 7HE
01634 553922