Forest plantations in Southwestern Europe: A comparative trend analysis on investment returns, markets and policies

Pra, Alex; Masiero, Mauro; Barreiro, Susana; Tomé, Margarida; Arano, Inazio Martínez de; Orradre, Gabriel; Onaindia, Aitor; Brotto, Lucio; Pettenella, D.

doi:10.1016/j.forpol.2019.102000

Cited by 20 publications

(19 citation statements)

References 10 publications

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“…In conclusione, la pioppicoltura continua a offrire interessanti possibilità di reddito nelle situazioni, quali quelle attuali, in cui i prezzi del legno di questa specie sono non inferiori a 80 euro a tonnellata. La redditività, soprattutto nella pianura padano-veneta dove i pioppi ibridi possono trovare condizioni di crescita ottimali, presenta risultati in linea, se non potenzialmente più alti, di quelli medi per gli investimenti in piantagioni forestali in Europa (Pra & Pettenella 2017, Pra et al 2019b.…”

Section: Discussione E Conclusioniunclassified

Profitability of poplar and hardwood broadleaves plantations in Italy

Coaloa¹,

Chiarabaglio²,

Giorcelli³

et al. 2020

Forest@

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Profitability of poplar and hardwood broadleaves plantations in ItalyIn Italy, forest tree crops cover an area of about 100,000 hectares of farmland: more than half are represented by specialized poplar plantations, while the remaining consists mainly of hardwood broadleaves plantations. The profitability of poplar and hardwood broadleaved plantations, assessed by field data collected on a representative number of plantation sites, was evaluated in terms of net present value and equivalent annual value under different levels of wood prices and in presence or absence of financial public incentives. Under current market conditions the investment in specialized poplar plantations is usually positive, even without subsidies. On the contrary, hardwood broadleaves plantations usually do not provide positive financial results without public incentives, while better financial results can be obtained by polycyclic plantations including both hardwood broadleaves (medium-long rotation) and hybrid poplar (short rotation) on the same parcel.

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Section: Discussione E Conclusioniunclassified

Profitability of poplar and hardwood broadleaves plantations in Italy

Coaloa¹,

Chiarabaglio²,

Giorcelli³

et al. 2020

Forest@

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“… 2.5 Colombia Pine spp. 4.1 New Zealand Pinus radiata 8.5 Sources: Beljan et al, 2020 ; Cubbage et al, 2020 ; Evison, 2018 ; Frey et al, 2018 ; Maraseni et al, 2018 , Maraseni et al, 2017 ; Pra et al, 2019 ; Ramírez et al, 2020 ; Watt et al, 2017 ; Zhang et al, 2019 ; NORSKOG, 2020 . …”

Section: Forestry As An Alternative Asset Classmentioning

confidence: 99%

“… Pra et al (2019) focused on forest plantation investments in Southwestern Europe and found that there are some opportunities for reasonably attractive investment returns (IRR > 5%) for current landowners and forest products industry, and to a less extent for financial investors. However, these new emerging markets are still hampered by timber market, biotic and abiotic risks and forest holdings structure.…”

Section: Contributions In the Special Issuementioning

confidence: 99%

Research trends: Forest investments as a financial asset class

Chudy

Cubbage

2020

Forest Policy and Economics

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This paper serves as an introduction to a Special Issue (SI) of the Journal of Forest Policy and Economics dedicated to forest investment and finance. The Special Issue stemmed from an International Forest Business Conference (IFBC2018) held in Poland on 6–8 June 2018. It includes papers based on speeches at that conference, as well as others on similar topics not presented at the conference. Topics addressed in this Special Issue include timberland investments, forest finance, intensively managed plantations, risk, uncertainty and decision-making, business structures and investment strategy, timber prices and forecasts, forestry contractors, and taxes. Details papers on these subjects follow in this Special Issue. Our finance research overview here provides a historical background and summary of forest investments and finance, focusing on forest equity investments made by institutional investors and in forestry real estate investment trusts, not including public lands or individual small private forest landowners. Forest assets as an investment class have expanded due to analytical advances, ownership changes, globalized markets, and sustainable forestry factors. Key components affecting forestry investments are expected asset returns, portfolio diversification, inflation hedge, and liquidity and natural risks. Topics detailed in this Special Issue include timberland investments, forest finance, intensively managed plantations, risk, uncertainty and decision-making, business structures and investment strategy, timber prices and forecasts, forestry contractors, and taxes. Finally, we identify knowledge gaps regarding forest investments for future research.

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“…In a recent study, eucalypt plantations were considered a relatively stable financial investment, capable of providing considerable return in medium to high productivity sites, whereas investments in pine stands only become attractive if supported by public subsidies [14]. However, that study did not consider the impact of fire on the attractiveness of investments.…”

Section: Introductionmentioning

confidence: 99%

“…More ambitious attempts have tried to couple fire models with forest growth models to be run in parallel (e.g., FVS-FFE [30], RODAL [31]). Nevertheless, few studies have focused on the viability of economic investments in the Mediterranean area [14]. In Quebec, Canada, a study including a cost-benefit analysis for nine fire management scenarios showed that the expenditure of fire management economically compensated the expenditure resulting of fire suppression strategies [32].…”

Section: Introductionmentioning

confidence: 99%

Combining Landscape Fire Simulations with Stand-Level Growth Simulations to Assist Landowners in Building Wildfire-Resilient Landscapes

Barreiro¹,

Benali²,

Rua³

et al. 2021

Forests

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The wildfire regime in Portugal has been responsible for millions of hectares of burnt area, and Alvares parish is no exception. In 2017, a severe wildfire burnt 60% of its area. Land abandonment has been increasing since the mid 20th century, and a large fraction of the forest area belongs to quasi-absent landowners. This has given rise to large, almost unbroken expanses of undermanaged forests that, in combination with rugged topography, originates a landscape prone to large, intense wildfires. Thus, a change in landscape composition and structure capable of reducing flammability and promoting fuel discontinuity is urgently needed. A fire spread simulator and a forest growth simulator were combined to show the impact of improving management at landscape level. It was assumed that the probability of large wildfires may be reduced by setting aside forest area for the implementation of a fuel break network (FBN) and increasing the area under sustainable forest management. Three levels of management intensity were simulated by restricting the area of Quasi-absent non-industrial owners to 34.5%, 20.1%, and 8.5% of the Alvares forest area, in favor of increasing the area of active and semi-active non-industrial owners (current, moderate, and high management scenarios). Different FBN extents, representing four levels of network implementation priority were combined with the management levels, resulting in 12 scenarios. To evaluate the impact of fire, simulations assuming no-fire, no-FBN, and current management intensity were performed, whereas the impact of operation costs was assessed assuming reduced costs for silvicultural operations. Per hectare simulations were then scaled up to the parish level and volume harvested and net present values were used to compare the management improvement scenarios. Results showed that fire has major repercussions on forest income, but these impacts can be minimized. Intensifying forest management and implementing the first priority FBN segments originated substantial improvements in financial outcome from timber production, close to those obtained for the full FBN implementation. Results also evidenced contrasting contributions from industrial and non-industrial owners with the later evidencing unbalanced cash-flows derailing the possibility for interesting forest incomes. The coupling of fire and forest growth simulations can be an interesting approach to assess the impact of different management and policy scenarios and inform policies.

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Forest plantations in Southwestern Europe: A comparative trend analysis on investment returns, markets and policies

Cited by 20 publications

References 10 publications

Profitability of poplar and hardwood broadleaves plantations in Italy

Profitability of poplar and hardwood broadleaves plantations in Italy

Research trends: Forest investments as a financial asset class

Combining Landscape Fire Simulations with Stand-Level Growth Simulations to Assist Landowners in Building Wildfire-Resilient Landscapes

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