Timber - It Might Be Worth More Than You Think

The timber market has gone from strength to strength over the last couple of years and although the strong price improvements have now steadied, the outlook for 2011 continues to look healthy.

At Land Factor we can help you review how your woodland should be worked this year as there is real potential to generate significant income from timber sales and we can advise you on the grants that are available.

Strong demand for home grown timber is being driven by a range of timber product markets from panel board, fencing and pallet manufacturers to sawmilling and the construction market. This has been greatly helped by the weakness of the pound, particularly against the euro, and recent significant investment in the sawmilling sector.

The emerging biomass market is underpinning the demand for small roundwood and traditional markets have reacted by offering stronger prices to secure supplies.  Although there has been recent press coverage decrying the governments encouragement to develop the biomass sector, there is no doubt that there is a place for the small to medium scale biomass market, locally based, to develop and add real (and realistic) value to a previously undervalued commodity.  Even the traditional hardwood log market is extremely strong so it is important to make sure you are achieving realistic prices.

There will be further encouragement to bring difficult, undermanaged woodlands into management to add to the availability of timber to the biomass and traditional markets and to improve them to meet wider objects, enhance amenity and capital values.  The Forestry Commission England is shortly to announce the launch of a new Woodland Improvement Grant aimed at encouraging biomass production.  This will provide capital grants towards infrastructure and other capital works which will help to bring undermanaged woodlands into long term sustainable management.
 
Land Factor would be happy to discuss this with you in more detail and help towards preparing plans for the profitable operation of your woodlands.

Please contact Athole McKillop Director tel 01661 843168.

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