Historical Perspective on the Relationship between Demand and Forest Productivity in the US South: At a Glance

Posted by Forest2Market.com

Increased demand for wood did not deplete forests in the US South; instead, it encouraged landowners to invest in productivity improvements that dramatically increased the amount of wood fiber, and therefore the amount of carbon, contained in the South’s forests.

Since the middle of the twentieth century, the amount of timberland-unreserved, productive forest land-in the US South has remained stable, increasing by about 3 percent between 1953 and 2015. During this period, economic growth and increased construction spurred consumer demand for forest products, which led timber harvests-or removals-to increase 57 percent. Yet over this same period, the amount of wood fiber-or inventory-stored in Southern forests increased 108 percent.

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Forest Finance: How Taxes Affect Timberland Investments

Posted on 2/24/2017 by Brooks Mendell on Forisk Consulting

Taxes matter in forestry, affecting most business decisions by for-profit firms and individuals. Ultimately, forest investors care about after-tax cash flows and values. Once income is withheld or designated for taxes, it is no longer available for consumption or investment. Forestland owners and timberland investors are subject to local and federal taxes, and these taxes differ by state and county (and country).

Federal taxes classify income into two categories: capital gains and ordinary income. Capital gains are profits on the sale of capital assets (such as real estate). Ordinary income is that which does not qualify as capital gains.

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