Timberland and farmland are in a unique asset class which adds portfolio diversification. Timberland and farmland have superior risk-adjusted returns and low volatility. It also correlates highly with inflation which makes it an excellent investment for preserving capital. In addition, timberland’s most unique characteristic is independent of economic conditions. Biological growth that provides for growth of 5-7% increase in volume annually.
Outlook – Future demands for farm and timberland are projected to increase due to population growth and an improvement in living standards worldwide. The Southeastern US is unique due to its highly developed forest products industry, highly productive lands, intensively managed timberland, and excellent sources of water from aquifers and high amounts of annual rainfall. This makes the Southeast one of the best places to invest in land. Land prices are competitive globally, and are vastly cheaper than the corn belt, so we enjoy the benefits of low risk with tremendous upside.