The average prices of freehold forestry in the UK rose 35% to 40% on the previous year, according to the 2008 Forest Market report from UPM Tilhill and Savills.
The report, which covers the year to September 2007, reveals that forest owners have seen the value of their woodlands more than double over the last four years.
It provides an annual snapshot of the UK commercial forestry market on properties larger than 25 hectares. This year's publication reflects an air of optimism about land ownership in general and timber as a commodity, thanks to rising timber prices and a market where demand still outstrips supply. Currently, UK forests produce about 8.5 million tonnes of timber annually, which satisfies just 15% to 20% of the country's needs. To meet this demand, timber production is expected to rise by at least 50% over the next 15 to 20 years.
"There is a lot of optimism in soft commodities, and this includes timber," said Simon Hart, woodland investment adviser with UPM Tilhill. "It's clear that the long-term financial and environmental benefits of forestry remain appealing to a wide range of investors."
The tax position for commercial woodland ownership remains constant and is an important factor in the freehold market, especially for new investors and their advisers.
Exemption from UK taxes provides encouragement for medium-to-long periods of commercial woodland ownership. On average, commercial forest ownership lasts between 12 and 15 years, with inheritance tax relief remaining a significant influence and motivation.
Tax-free timber income is also an incentive to buyers, particularly those purchasing older woodlands and looking for income to supplement pensions.
Limousin semen sells for record price TWO straws of semen from the now-deceased Limousin bull Greensons Gigolo went under the hammer for £900 at the Limousin spring sale at Dungannon.
Offered for sale by WJ Bradley & Son, Knockloughrim, County Londonderry, the two straws sold for £450 apiece to Crawford Bros, Rathkeeland, Maguiresbridge, County Fermanagh.
This is believed to be a UK record for beef semen sold through an auction ring. The world record for semen is held by an Australian farmer who paid A$1400, equivalent to around £663, in May 2002 for a straw of Jersey semen.
Born in 1991, Greensons Gigolo was a noted AI bull and has over 1500 progeny registered with the British Limousin Cattle Society, making him the fifth most prolific bull of all time in the society's herdbook.
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