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Land consultant and writer Curtis Seltzer interviewed me on the topic of timberland investing and financial analysis. One question in particular got to the heart of how I think about applying finance to forestry-related investment decisions: “Do you use or more…
Forisk has expanded its coverage of operating and announced wood-using bioenergy projects from the US South to the continental US. Next month’s post will include a summary of national wood bioenergy activity. For information regarding the detailed US-wide bioenergy database, more…
Recent analysis and reporting of wood bioenergy markets in the US fail to take into account the prohibitive economics and back-bending logistics required to successfully start, build and operate wood-using bioenergy projects. First, the Environmental Working Group published a white more…
Several years ago, an analyst from a hedge fund called me to discuss suitable discount rates for timberland investments. We had the following exchange: “A common error with discount rates is that folks use real and nominal rates inconsistently,” I more…
Locating, financing, constructing and operating wood-using bioenergy projects go beyond drafting a pro forma and wishing upon a star. The reality is complicated, difficult and time-consuming. Last year, we developed a methodology to help forest owners and other wood-market more…
The Mountain Pine Beetle (MPB) – like a ravenous, insatiable house guest – continues to feast on pine forests, primarily in British Columbia. Fortunately, according to the most recent update from researcher Adrian Walton of the BC Forest Service (May 11, 2010), more…
In the May issue of Wood Bioenergy South, we updated our conversion of gallons of cellulosic ethanol to 40 gallons per green ton of wood. This change was made based on research from the Department of Energy, which published an more…
“Inflation at 44-Year Low” trumpeted today’s headline from the Wall Street Journal. The news was pause-worthy at our shop because one of the most common arguments for investing in timberland is its purported potential to hedge inflation. Well, does it? more…
The New Yorker magazine published a cartoon in its May 17, 2010 issue of two trees talking in the woods. One says to the other, “Can you believe that people inhale the gases we expel – sick, right?” The cartoon more…
Managing the risk of forestry and timberland investments fits with the “circular flow of funds” approach to financial management, which focuses on two fiduciary objectives. One, raising and supplying the funds required for timber-related investments on favorable terms. Two, using more…