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The average return on timberland investment can vary based on various factors such as location, timber markets, management practices, holding period, and overall market conditions.
It's important to note that timberland investments are typically considered long-term investments, often spanning several decades.
According to research and industry reports, the average annual return for timberland investments has ranged between 6% and 10% over the long term.
It's important to consider that timberland returns are composed of two main components: biological growth and timber price appreciation.
Biological growth refers to the increase in timber volume as trees grow over time, while timber price appreciation refers to the change in the market value of timber products.
As with any investment, past performance does not guarantee future results, and it's essential to conduct thorough research before making any investment decisions.