In the current economic climate, timberland managers have experienced elevated input costs (energy, transportation and fertilizer for example) than they have seen in their lifetimes. The rewards of such costs are usually worth it when it comes time to harvest. Although the forecast is still favorable, it’s just more of a pinch financially to get there.
Volatility of the lumber market is always a factor for timberland owners, they can decide when to harvest based on favorable market conditions. Momentum may have stalled in housing starts in the U.S., but they can simply wait for the right opportunity and let their trees grow in value.
Consumer desire for green products is what is going to assist in the decarbonation of the globe. The future is very bright.
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