From Backwoods to Boardrooms: The Rise of Institutional Investment in Timberland

The ownership of forestland has gone through two structural changes in the US and other parts of the world: the accumulation of industrial timberlands between the 1900s and 1980s and the transformation of industrial timberlands to institutional ownerships afterwards. This book explores the history and economics of these two changes, focusing on the latter. It explains why industrial firms were able to profit from owning large areas of forest lands and how institutional investors could purchase these lands later. It also compares private and public equity timberland investments with respect to risk-adjusted returns and other dimensions of interest to investors and forest managers. Finally, it provides thoughtful commentary into the future of institutional timberland investments and global forest sustainability.

Format: Paperback / softback
Length: 280 pages
Publication date: 15 September 2021
Publisher: Oregon State University

Over the past century and a half, forestland ownership in the United States and other regions has undergone two significant structural transformations. Firstly, between the 1900s and 1980s, the accumulation of industrial timberlands emerged, marking a pivotal period in the landscape. Secondly, subsequent to this, industrial timberlands underwent a transition towards institutional ownership, shaping the landscape anew. This book delves into the intricate history and economics of these two structural shifts, with a particular focus on the latter. The magnitude of these changes is truly extraordinary, impacting tens of millions of acres of private landholdings and billions of dollars of investment. They exert a profound influence on industrial structure, forest management practices, policy frameworks, research and development endeavors, community well-being, and the sustainability of forests.

To explore these transformations, the author of this book employs a comprehensive approach, examining key events, influential figures, prevailing management philosophies, public policies, and institutional factors. Through meticulous research and analysis, the author seeks to unravel the economic underpinnings behind industrial firms' profitability in owning vast forested areas and institutional investors' subsequent acquisition of these lands. This book offers a unique perspective, shedding light on historical details that may have otherwise been overlooked. Moreover, it conducts a comparative analysis of private and public equity timberland investments, assessing their risk-adjusted returns, alignment of interests, capacity to exploit market inefficiencies, and their track records in forest management and conservation.

Furthermore, the book provides thoughtful commentary on the future of institutional timberland investments and global forest sustainability. It raises important questions about the potential benefits and challenges associated with these investments, the role of private and public sectors in sustainable forest management, and the need for collaborative efforts to address the complex challenges facing forests today. This book serves as a vital resource for anyone seeking to understand the intricacies of forestland ownership, economics, and sustainability. It provides a comprehensive framework for analyzing and evaluating the impact of these structural changes on the environment, society, and economy.

Weight: 460g
Dimension: 152 x 229 x 21 (mm)
ISBN-13: 9780870711428