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re: Guide To Beginning A Portfolio of Blue Chips

Posted on 12/3/13 at 8:18 pm to
Posted by oR33Do
Tuscaloosa
Member since Oct 2012
13561 posts
Posted on 12/3/13 at 8:18 pm to
Pine is very profitable when you own 100+ acres and sell in 20 acre lots per year.

It also has other revenue streams, such as selling the pine needles from the yearly shed, as they are used for mulch and you can make upwards of $30,000 in a 3 month span off 60-80 acres.


In the timber industry, right now I'd be looking at ways to invest into side markets for the Hardwood market. Cut Hardwood lumber is currently pushing market highs and it is expected to have a 30-50% market growth. There is a Hardwood Flooring Mill in Tennesee that is currently buying up a large part of the Southern market Red/White Oak which has drove prices for FAS/1 common / 2&3A graded cut lumber up to current record highs. Most of this ends up being exported to foreign countries for resale.

Best way to explain this is Currently Southern Market Red Oak FAS is a little over $1100 per 1000 sq feet, 4 months ago it was pushing only $975-980. Most outboard sawmills are stockpiling Oak Trees for post winter cuts to see how high the prices go, or if demand will fade.


Sorry if this is a little much to comprehend or TMI, I work in the industry.

Posted by lighter345
Member since Jan 2009
11865 posts
Posted on 12/5/13 at 12:44 pm to
Can you speak more to the Pine needles operation? Are you talking about Alabama or is the same true for LA?
Posted by Crawdaddy
Slidell. The jewel of Louisiana
Member since Sep 2006
18398 posts
Posted on 12/8/13 at 10:47 pm to
quote:

Pine is very profitable when you own 100+ acres and sell in 20 acre lots per year.

It also has other revenue streams, such as selling the pine needles from the yearly shed, as they are used for mulch and you can make upwards of $30,000 in a 3 month span off 60-80 acres.


In the timber industry, right now I'd be looking at ways to invest into side markets for the Hardwood market. Cut Hardwood lumber is currently pushing market highs and it is expected to have a 30-50% market growth. There is a Hardwood Flooring Mill in Tennesee that is currently buying up a large part of the Southern market Red/White Oak which has drove prices for FAS/1 common / 2&3A graded cut lumber up to current record highs. Most of this ends up being exported to foreign countries for resale.

Best way to explain this is Currently Southern Market Red Oak FAS is a little over $1100 per 1000 sq feet, 4 months ago it was pushing only $975-980. Most outboard sawmills are stockpiling Oak Trees for post winter cuts to see how high the prices go, or if demand will fade.


Sorry if this is a little much to comprehend or TMI, I work in the industry


Where is a good start to get started in this land/tree harvest? I would love to buy 100 acres plus but we all know that is some serious cash. I always said it takes $ to make $. Buying the land in pine rich areas like the south seems like it can pay for itself and eventually making money. Buying cheap land and planting pine would be my route. I could even hunt it. Who would I contact? Why is the seller not doing this? How do I plant? Lots of questions
Posted by reb13
Member since May 2010
10905 posts
Posted on 12/9/13 at 9:48 am to
Good to hear the industry is coming back, one of my good friends family owns about 3000 acres of pine trees and they were getting killed because prices were so low.
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