|agricultural forestry property consultant|
About Joe Randall
Snr Consultant at both- Greenwood Investments and Vineyards Direct.
Studied both viticulture and forestry in Sussex, England. and has a developed role within Greenwood Investments on a consultancy basis dealing within the agricultural property markets.
Acquires and sells farm properties, forestry land, and Vineyards globally (through the vineyard investment arm - Vineyards Direct) to corporate investors as well as private individuals for both lifestyle and investment.
Vineyard investment is a particularly capital intensive market and as such the market tends to be used predominantly by large companies such as AXA Millésimes, the vineyard investment arm of the insurance conglomerate,
The primary performance factor is land attributed costs. Returns from forestry are expressed as real rates of return over and above the rate of inflation.
Growing for the Future - A Strategic Plan for the Forestry Sector in Ireland estimated the real rate of return from forestry (Sitka spruce) as 5% including land cost. Irish Forestry Unit Trust (IFUT) estimates the return from forestry as being within the range of 5% to 7%. At a conference on forestry investment organized by the Irish Forestry Industry Chain (IFIC), most speakers indicated returns in the region of 5 to 7% with the proviso that these could be higher if there was no land cost associated with the investment. Thus farmers planting their own land could expect significantly higher returns. There have been no claims that returns from forestry in Ireland can achieve over 5-7% consistently with associated land costs.
Rates of return of 7% and 6.5% have been demonstrated. The World Production Outlook in Britain concluded that rates of return were low and Very favorable assumptions about land, labor and timber prices raised this to about 6%. Other analysts indicate returns from commercial conifer forestry in the UK are in the region of 4%-6% (7).
Models developed by the INIA (Instituto Nacional de Investigation Agropecuaria) to evaluate returns have shown results that are widely “seen to achieve results that either meet or exceed the requirements of the major international pension fund investors with rates in excess of 20%”
For more information please Greenwood Investments / Vineyards Direct.