Why buy recreational forestland?
While there are many reasons to buy recreational forestland, here are just a few:
1. Immediate and continuous enjoyment for biking, hiking, hunting, fishing, ATV riding, snowmobiling, horseback riding, and other outdoor sport and recreation.
2. Camping or RV site.
3. Potential home, cabin, or hunting lodge site.
4. Consistent cash flow from potential leasing opportunities (such as hunting, minerals, wind farms, and cell towers).
5. Emerging market opportunities in biomass, carbon sequestration projects, and potential conservation outcomes.
6. Significant timber income and benefits from the harvest of mature trees including preferential tax treatment of timber harvest income (capital gains vs. ordinary income), inflation hedge (timber prices have historically kept up to or exceeded the rate of inflation), portfolio diversification, history of attractive positive long-term returns, and overall low annual carrying costs compared to other investments.