The role of timber plantations in UK Investment portfolios

Although timber plantations and forests are classified as forms of agricultural production, the ownership of this land classification is not limited to rural producers. Timber plantations and forests are now regarded as a long-term investment with both institutional and absentee owners. While the NCREIF property indices have been the benchmarks for the measurement of the performance of the commercial property market in the UK, for many years the IPD timberland index has recently emerged as the U.K. forest and timberland performance indicator. The IPD Forest index incorporates 126 properties over five regions in the U.K. This paper will utilise the IPD Forestry Index to examine the performance of U.K. timber plantations and forests over the period 1981-2004. In particular, issues to be critically assessed include plantation and forest performance analysis, comparative investment analysis, and the role of plantations and forests in investment portfolios, the risk reduction and portfolio benefits of plantations and forests in mixed-asset portfolios and the strategic investment significance of U.K. timberlands.

The role of timber plantations in U.K. investment portfolios

Although timber plantations and forests are classified as forms of agricultural production, the ownership of this land classification is not limited to rural producers. Timber plantations and forests are now regarded as a long-term investment with both institutional and absentee owners. While the NCREIF property indices have been the benchmarks for the measurement of the performance of the commercial property market in the UK, for many years the IPD timberland index has recently emerged as the U.K. forest and timberland performance indicator. The IPD Forest index incorporates 126 properties over five regions in the U.K. This paper will utilise the IPD Forestry Index to examine the performance of U.K. timber plantations and forests over the period 1981-2004. In particular, issues to be critically assessed include plantation and forest performance analysis, comparative investment analysis, and the role of plantations and forests in investment portfolios, the risk reduction and portfolio benefits of plantations and forests in mixed-asset portfolios and the strategic investment significance of U.K. timberlands.

Biodiversity values of timber plantations and restoration plantings for rainforest fauna in tropical and subtropical Australia

It has been suggested that timber plantations could play an important role in the conservation of biodiversity in cleared rainforest landscapes, not only because of their potential to cost-effectively reforest large areas of land, but also because they may provide habitat for rainforest plants and animals. However, this last claim is largely untested. In this study, we surveyed the occurrence of a range of animal taxa in monoculture and mixed species timber plantations and restoration plantings in tropical and subtropical Australia. We used the richness of ‘rainforest-dependent’ taxa (i.e., birds, lizards and mites associated with rainforest habitats) in reforested sites as our measure of their ‘biodiversity value’. We also examined whether the biodiversity value of reforested sites was correlated with habitat attributes, including plant species richness and vegetation structure and, further, whether biodiversity value was affected by the proximity of reforested sites to intact rainforest.

Trade-offs between timber production and biodiversity in rainforest plantations: Emerging issues and an ecological perspective

During the past two centuries there have been three major paradigm shifts in the management of Australian rainforests and the use of their timbers: from felling native forests towards growing plantations; from viewing forests and plantations as mainly providers of timber to viewing them as sources of multiple benefits (e.g. timber, biodiversity, carbon sequestration, catchment protection, recreation, regional economic development); and from timber plantations being developed mainly by government on public land towards those established by private citizens, companies, or joint venture arrangements, on previously-cleared freehold land. Rainforest timber plantations are increasingly established for varied reasons, and with multiple objectives. Landholders are increasingly interested in the biodiversity values of their plantations. However, there are few guidelines on the changes to plantation design and management that would augment biodiversity outcomes, or on the extent to which this might require a sacrifice of production. [Abstract extract]

Influence of cyclonic winds on the performance of hardwood plantations in tropical north Queensland.

Severe Tropical Cyclone Yasi crossed the far north Queensland coast at Mission Beach on February 3rd, 2011, shattering the regions developing hardwood plantation industry. The cyclone’s path covered the primary areas of hardwood and softwood plantations in this region, causing widespread destruction. The extent of cyclone damage, coupled with the weak international economy has resulted in a severe decline in industry confidence for the future of timber plantations in this region. This report reviews the impacts of Severe TC Yasi on the performance of key hardwood plantation species in north Queensland. It summarises the influence of species, genetics, plantation design, management and age on plantation resilience. The information will contribute to a “Best Practice Guide for Timber Plantations in Cyclonic Areas” to be produced by Timber Queensland. This will assist companies with future plantation investment decisions in the tropical cyclone zone. 2 200 trees were assessed, including 44 species at 32 localities located from Daintree to Townsville. Data are also presented for a post-cyclone assessment of 5 900 African mahogany trees on four sites in the Ingham region. A report prepared for the Timber Queensland project: Best Practice Guide for Timber Plantations in Cyclonic Areas.

Conservation of tropical forest tree species in a native timber plantation landscape

Tropical terrestrial environments are becoming dominated by anthropogenic land-uses, making retention of biodiversity in production landscapes of critical conservation importance. Native timber plantations may represent a land-use capable of balancing production and conservation by potentially supporting understorey plant and tree species otherwise restricted to old-growth forests, with little impact on yield. In this study we investigated the conservation value of native plantation forests in the lowlands of New Britain, Papua New Guinea. We compared the composition of tree species (≥10. cm DBH) of unlogged forest to those of different aged native Eucalyptus deglupta plantations and intervening (historically logged) secondary forests. We found a high capacity for biodiversity conservation within plantations, with 70% of forest tree species persisting in mature plantations (13-15. years old). However, compositional analyses revealed lower numbers of large individuals (≥10. cm DBH) in both late-successional and non-vertebrate-dispersed species in the plantations, indicating the difficulty of retaining mature old-growth forest trees in production land-uses. Secondary forest protected by conservation reserves was compositionally indistinct to unlogged forest. Our results demonstrate the potential for tropical native timber plantations to contribute to the retention of biodiversity. However, appropriate management is required to ensure the persistence of source populations of old-growth forest tree species. With careful planning a balance between production and conservation can be achieved in lowland tropical regions.

Financial and economic performance of long-rotation hardwood plantation investments in Queensland, Australia

In Queensland, Australia, there is presently a high level of interest in long-rotation hardwood plantation investments for sawlog production, despite the consensus in Australian literature that such investments are not financially viable. Continuing genetics, silviculture and processing research, and increasing awareness about the ecosystem services generated by plantations, are anticipated to make future plantings profitable and socio-economically desirable in many parts of Queensland. Financial and economic models of hardwood plantations in Queensland are developed to test this hypothesis. The economic model accounts for carbon sequestration, salinity amelioration and other ecosystem service values of hardwood plantations. A carbon model estimates the value of carbon sequestered, while salinity and other ecosystem service values are estimated by the benefit transfer method. Where high growth rates (20-25 m(3) ha(-1) year(-1)) are achievable, long-rotation hardwood plantations are profitable in Queensland Hardwood Regions 1, 3 and 7 when rural land values are less than $2300/ha. Under optimistic assumptions, hardwood plantations growing at a rate of 15 in 3 ha-1 year 1 are financially viable in Hardwood Regions 2, 4 and 8, provided land values are less than $1600/ha. The major implication of the economic analysis is that long-rotation hardwood plantation forestry is socio-economically justified in most Hardwood Regions, even though financial returns from timber production may be negative. (c) 2003 Elsevier B.V. All rights reserved.

Restoration of degraded tropical forest landscapes

The current scale of deforestation in tropical regions and the large areas of degraded lands now present underscore the urgent need,for interventions to restore biodiversity, ecological functioning, and the supply of goods and ecological services previously used by poor rural communities. Traditional timber plantations have supplied some goods but have made only minor contributions to fulfilling most of these other objectives. New approaches to reforestation are now emerging, with potential for both overcoming forest degradation and addressing rural poverty.

A proposal for improving and adorning the island of Great Britain; for the maintenance of our navy and shipping, etc., by parochial plantations of timber and other trees, upon the forests, chaces, commons, and waste grounds throughout the kingdom.

Mode of access: Internet.

A study of forest plantations for timber production on the island of Hawaii,

"In cooperation with Dept. of Agriculture and Conservation, State of Hawaii."

Species performance and site relationships for rainforest timber species in plantations in the humid tropics of Queensland

The performance of 32 tropical rainforest and eucalypt tree species grown in private, mixed species plantations was examined. There were two objectives: 1) to summarise the growth of species by soil and rainfall classes, 2) to investigate the degree of variability in growth rates with respect to environmental variables. Data were collected from 112 plots established in the Community Rainforest Reforestation Program (CRRP) plantations across sites in the humid tropics of central and north Queensland. Sites ranged from sea level to 1160 m above sea level, with annual rainfall from 800 mm to 4300 mm, on soils derived from basalt, metamorphic and granite parent material. Species performance was significantly related to climatic and edaphic variables but the strength of these relationships differed among taxa.

Predicting wood value in Queensland Caribbean pine plantations using a decision support system

A decision support system has been developed in Queensland to evaluate how changes in silvicultural regimes affect wood quality, and specifically the graded recovery of structural timber. Models of tree growth, branch architecture and wood properties were developed from data collected in routine Caribbean pine plantations and specific silvicultural experiments. These models were incorporated in software that simulates the conversion of standing trees into logs, and the logs into boards, and generates detailed data on knot location and basic density distribution. The structural grade of each board was determined by simulating the machine stress-grading process, and the predicted graded recovery provided an indicator of wood value. The decision support system improves the basis of decision-making by simulating the performance of elite genetic material under specified silvicultural regimes and by predicting links between wood quality and general stand attributes such as stocking and length of rotation.

Accelerated drying of plantation grown Eucalyptus cloeziana and Eucalyptus pellita sawn timber

The objective of this study was to gain an understanding for drying sawn timber produced from fast-grown, well-managed Queensland hardwood plantations using accelerated drying methods. Due to limited resources, this was a preliminary study and further work will be required to optimize schedules for industrial implementation. Three conventional kiln trials, including two for 38-mm-thick, 19-year-old plantation Gympie messmate (Eucalyptus cloeziana F. Muell.) and one for 25mm thick, 15-year-old plantation red mahogany (Eucalyptus pellita F. Muell.), and two vacuum kiln drying trials, one each for 38- and 25mm thick Gympie messmate, were conducted. Measurements of final cross-sectional moisture content, moisture content gradient, residual drying stress, and internal and surface checking were used to quantify dried quality. Drying schedules were chosen based on either existing published schedules or, in the case of the vacuum drying trials, existing schedules for species with similar wood density and dying degrade properties, or manipulated schedules based on the results of trials conducted during this study. The findings indicate that both species can be dried using conventional drying techniques with acceptable grade quality in approximately 75 percent of the drying time that industry is currently achieving when drying native forest timber of the same species. The vacuum drying time was 60 percent less than conventional drying for 38-mm-thick, 19-year-old Gympie messmate, although drying quality needs improving. The findings have shown that through careful schedule manipulation and adjustment, the grade quality can be optimized to suit the desired expectation. Additional research is required to further optimize the schedules to ensure acceptable grade qualities can be reliably achieved across all drying criteria and exploit opportunities to reduce drying times further.