Direct investment in timberland has one undeniable advantage over other asset classes – timber grows.  According to Mike Matre, R.F., president of Matre Forestry Consulting Inc., an established pine forest will grow on average about 7 percent each year. Factor in product advancement as timber ages and returns can exceed 10 percent per year. For timberland owners that means each year, no matter what the stock market is doing, their timber holdings continue to grow.

“Timber is also unique because you can store it on the stump until market prices are favorable.  Most other commodities have to be harvested and either sold at current prices or stored at some cost,” Matre said.

Timber market prices remain steady
Pine timber products range in value from pulpwood, which is typically purchased by paper mills and commands the lowest market price, to sawtimber, which is used in construction.  Pulpwood prices set 10-year record highs in first quarter 2010 and remain strong.  While up slightly in 2010, sawtimber prices remain significantly below their prerecession levels.

“We could use a stronger sawtimber market and for that, we need America to start building again,” Matre explained.

Hardwoods, on the other hand, are one of the few commodities to have held or increased their prerecession value.  According to Matre, quality hardwoods continue to bring premium prices.

Improving returns through forestry management
While timberland will naturally grow and produce more wood per acre each year, intensive forestry management can increase yields.  Forestry management includes a variety of practices such as timber thinning to generate income and improve growth rates and wildlife habitat, herbicide and fertilizer applications to control undesirable competition and promote the growth of desirable vegetation, prescribed burning to promote desirable habitat, plantings and other related services.

Established in 1999, Matre Forestry Consulting is a full-service forestry consulting company providing forestry management services as well as hunting-plantation development, wildlife-habitat enhancement and real estate services.

“We help landowners get the most out of their timber and wildlife resources,” Matre said.    “We provide appraisals, assist with timber sales and help our clients acquire, manage and sell land.”

One of the newer specials Matre Forestry Consulting offers is the development of quality map packages that include a 2009 aerial map, a topographic map, an aerial map with topographic overlay, location maps and a land-use/timber-type map.

“The maps are a great tool for managing and marketing properties.  Their high quality makes them suitable for displaying in a frame,” Matre explained.

Supporting growth in the timber industry
Today the real estate market for timberland, farmland and recreational property is slow.  The lending environment remains tough, making it difficult for buyers to obtain financing.

“There is still a significant gap between what non-stressed sellers are asking and what ready, willing and able buyers are offering,” Matre reported.

Matre, who grew up in Albany, values its central location for doing business.  He said “anything local leaders can do to streamline and lessen the costs of acquiring and maintaining needed licenses and permits would stimulate growth.  Lowering sales and property taxes would also stimulate economic growth, help keep existing industry and attract new industry.”

More information on Matre Forestry Consulting is available online at www.matreforestry.com.  Matre maintains his real estate license with Needmore Properties.  Available listings can be viewed on www.needmoreproperties.com