Long-term capital appreciation is the key driver behind forestry outstripping other investment classes. Other factors such as straightforward and easy management, low cost of initial investment, and the benefit of the same tax allowances as agriculture are boosting the sector. In the past five years capital values of UK timber have grown by approximately 14% as seen by Edinburgh-based Patrick Porteous. According to the IPD Annual Forestry Index in 2012 the return on timber investment was 18.3% and the annualized return over the past ten years was 16.3%. Lowland stands near to harvest are realizing as much as £15,000 per hectare. The latest National Forest Inventory Report estimates that softwood availability averages 16m cu m a year for the next 25 years showing no signs of a shortage.
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