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Neglect of 270 Forest Acres Leads to a Million Dollar Loss

Bob has pointed out some good points inn this blog.    I got some advice on my land a few years after I bought and found how I could do better.

Bob and his crew are tops in this area.

If you have just bought some land or are thinking of doing so...Call Bob!!!

Neglect of 270 Forest Acres Leads to a Million Dollar Loss

A friend recently introduced me to a friend of his who owns a half section (320 acres) in Western Wisconsin.

Both of these fellows seemed proud of the fact that in the 55 years that he owned this property he had been preserving the forest, never cutting anything and certain that it must be worth a fortune by now.

Then I had do my job and burst their bubble, and pull out my handy spreadsheet.

Just like a rental home that is ignored for 50 years, not only will you lose out on periodic income from rent but the house will deteriorate over time.

An ignored forest will also deteriorate while it is being ignored and the periodic income that is generally gained through the thinnings that are required to maintain and improve the forest, can be significant as well.

Not only is his forest worth much less than it was years ago, but they also lost out on over $700,000 in periodic income from maintenance thinnings.

Of course our handy little spreadsheet does not show the other losses in interest and taxes, which will require this million dollar loss to multiply many times over.

Had this landowner consulted with a Forester toward the beginning of his venture, he would have been following a management plan.

This plan would have laid out a schedule and prescription that would have provided for periodic maintenance of the forest as well as periodic income from the forest. 

 

 

While you are feeling sorry for our friend here, keep in mind that everyone of us is part owner in a large tract of land in our National Forests where they also employ a similar management style, mostly because they allow a bunch of uneducated pseudo environmentalists to push them around and hamper any efforts to care for the forest.

 

 

 

Picture credit

http://www.freedigitalphotos.net/images/agree-terms.php?id=10015682  "Decreasing Diagram In 3d" by jscreationzs

 

 

 

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row of trees

Bob Crane

 Woodland Management Service

 715-204-9663

 2933 Church St

 Stevens Point, WI 54481

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Real estate expertise provided by Bob Crane on ActiveRain

Comment balloon 4 commentsWilliam Feela • June 10 2016 05:25PM

Comments

Hello William

This is a great reblog and Bob Crane really knows his business when it comes to acreage and trees.

Posted by Robert Vegas Bob Swetz, Las Vegas Henderson Homes for Sale (Realty ONE Group) over 3 years ago

Thanks for sharing this Bill, with all the forest land you work with I am sure this will be of value to your readers.

Posted by Bob Crane, Forestland Experts! 715-204-9671 (Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities) over 3 years ago

William

Expects are an important part of the real estate business. With expect advising the owner of the land they would have maximized their land and the lands potential.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) over 3 years ago

I have learned a lot from Bob and his blogs...never thought about land this way

Posted by Vern Eaton, Realtor 651-674-7449 over 3 years ago

Participate