Forest landscape investments
Forest landscape services
Forest Landscape Restoration delivers on the triple bottom line – economic, environmental, social. Productive systems that include trees can deliver multiple income streams from annual crops, livestock and quality wood or biomass from trees. The environmental services range from soil erosion control to air filtration, some of which can be translated into market benefits, such as carbon or increased yield. Socially, land owners benefit from such systems as they provide better, climate resilient income and an economic buffer against commodity price fluctuations.
See “forest landscape benefits” illustration right.
The benefits of Forest Landscape Restoration
Cattle production provides steady cashflow with frequent annual and seasonal variations due to volatile markets. Initial investment costs are relatively low, especially if land is owned already.
Reforestation investments have much longer payback periods and initial investment costs are high, especially if land needs to be purchased. The profitability varies but in general the income is much more stable compared than agricultural commodities.
The breakeven point is reached later in tree based systems than in pure agricultural or livestock systems. In fast growing tree plantations, the first commercial thinning provides an income from biomass sale around year 7 after planting.
The main income from tree plantations arises at harvesting age. In eucalyptus plantations managed for quality timber, this is around year 15 after planting.
The cumulative cash flow over the entire investment period can be much higher for tree based systems as compared to agricultural or livestock systems. The long term investment pays off.