Cost-share Options and Tax Incentives

Character is like a tree
and reputation like a shadow.
The shadow is what we think of it;
the tree is the real thing.
- Abraham Lincoln

Calculating Your Return on Investment

Different tree species grow to different heights at maturity and not all trees live to the same old age. The prized timber and abundance of nuts that a black walnut offers comes at maturity, around 150 years and when it towers at about 70 to 80 feet, according to American Forests. White pine grows to 120 feet or more and can live to 250 years. Some of the best trees garner top market prices when they're used for veneer wood. While other trees, perhaps when hit by lightening, become wildlife hotels.

There can even be big differences in height among trees of the same species depending on the amount of sunlight, moisture, and soil nutrients the tree gets, the genetic makeup of the seed, and competition from neighboring trees (Source: Wisconsin Forestry). Other variables determining the value of your timber stand are the composition and quantity of financially mature trees (see discussion below) on your land at the time of the harvest; the greater the concentration of highly valuable trees, the better the price often negotiated when the harvest is made.

Return on Investment

Your planting is for the future -- whether to transform a tired 30 acres of cropland into forest or establish a riparian buffer along a stream. It involves careful planning, site preparation, proper seedling selection, hardy seed stock, and a bit of good fortune from the weather. Don't gamble with your trees. The odds are stacked against your success, in part, from abundant deer populations and increasingly severe weather.

While tree seedlings are less than a dollar or two per tree, they can mature and be worth thousands of dollars, not to mention providing wildlife habitat, preventing soil erosion, and helping mitigate global warming (by sequestering carbon dioxide).

Invest wisely with reforestation aides to secure a living legacy that will last to the next generation.

Biological and Financial Maturity of Trees

According to the Ohio State University Extension, "biological maturity refers to the age when a tree begins to decline in vigor and health and becomes increasingly susceptible to diseases and other harmful environmental factors that will ultimately result in death. This age of biological maturity, which might be referred to as a tree's natural life expectancy, varies dramatically among species (even within genus) and with site quality. Red and silver maples, for example, often approach biological maturity well before they are 150 years old, while black and sugar maples are often still thriving well beyond 200 years of age. Other species, such as white oak, may live well beyond 300 years under favorable conditions."

Again, according to the Ohio State University Extension, "forest owners wishing to maximize the financial returns they receive from their woodland will be more concerned with financial maturity. Usually a tree is considered to be financially mature when its rate of value increase falls below a desired level. The rate of value increase of a tree can be determined by comparing the dollar value of its expected growth during a given time period (e.g., 10 years) with the dollar value of the tree prior to that growth. Think of the value of the tree as the principal in a bank account, and the value increase as the interest earned on that principal. This value increase can be expressed as an annual compound interest and compared with alternative investments or a desired rate of return. If the tree's expected rate of value increase exceeds the desired rate, the tree is not financially mature and should be allowed to grow for the specified time period. If the tree's expected rate of value increase is less than the desired rate, the tree is financially mature and, based on that criteria, should be cut." For more on this discussion and a detailed example with white oak (with technical information), see the Financial Maturity Fact Sheet developed by Ohio State University Extension.

Protect your trees. Select from the growing list of reforestation aides offered by Southwest Badger RC&D, and increase your chances of a prosperous forest in the years to come.

Southwest Badger
Resource, Conservation & Development Council, Inc.
150 W. Alona Ln.
Lancaster WI 53813
Tel: 608-723-6377 x136
E-mail: swbadger@mhtc.net
Website: www.treeprotection.org