Timberland and Forestry

Types of timberlands and forestry

Timber sales: Revenues through timber sales in addition to the capital appreciation of the forest itself. Interim revenues vary by type of timber and its intended use (e.g., furniture, housing and other construction, paper). Additionally, investors can drive the asset's business value through improvements in operations and business management and the provision of capacity-building support.

• Sales of other forest products: Such products can vary widely; funds included in this study cited sales of rubber and latex, honeybee products, and minerals, among other sources, as key revenue sources.

• Sales of carbon o­ffsets: Carbon offsets are reductions in carbon dioxide or other greenhouse gas emissions intended to counterbalance emissions made elsewhere. Such offsets can be sold to individuals and organizations seeking to reduce their carbon footprint; the revenues generated from these sales can fund the purchase and sustainable management of forests, among other types of environmentally conscious projects.

• Leasing of land or land rights: Managers that own forest assets can offer leases or temporary rights to hold and use land, to a wide range of lessees, for a fee.

• Sale of land rights for permanent conservation (e.g., easements): Working forest conservation easements (WFCEs) are legal agreements between landowners and eligible organizations such as land trusts or government agencies that restrict future activities on the land to protect conservation values.