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Returns to investors in forestry are made up of sales of timber (standing or felled), sales of other goods and services, increases in the value of the woodland (from annual increment or market factors), and the net income from subsidies (e.g. planting grants) less taxes. The investors’ costs are made up of employment costs and other purchases.

Estimates of the overall return from commercial forestry are produced annually in the Investment Property Databank (IPD) UK Forestry Index, available at www.msci.com/www/ipd-factsheets/ipd-uk-annual-forestry-index/0163322597. The index is calculated from a sample of around 150 private sector coniferous plantations of predominantly Sitka spruce in mainland Britain. The IPD UK Forestry Index is outside the scope of National Statistics.

The index shows a total return of 11.6% per annum for the three year period 2015 to 2017, and an annual return of 13.9% for 2017 (Table 8.2).

Table 8.2 IPD UK Forestry Index: Returns from forestry, 2008-2017

Period ending Index (1992=100) Annual % return 3 year return (annual average %)
2008 226.5 7.1 19.3
2009 251.9 11.2 16.1
2010 304.2 20.8 12.9
2011 404.2 32.9 21.3
2012 479.6 18.6 23.9
2013 551.2 14.9 21.9
2014 653.6 18.6 17.4
2015 725.2 10.9 14.8
2016 797.0 9.9 13.1
2017 907.8 13.9 11.6

Source: IPD UK Forestry Index

These figures are outside the scope of National Statistics.  For further information see the Sources chapter.

Figure 8.2 IPD UK Forestry Index: Returns from forestry

test fig 8_2.png

Source: IPD UK Forestry Index

Note:

1. Data collected for the IPD UK Forestry Index started in 1992

These figures are outside the scope of National Statistics.  For further information see the Sources chapter.

Additional resources

Sources chapter: Finance & prices

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