Originally Posted By: Rebelman
The present value of a $10/ac hunting lease (annuity) for 20 years is $105/ac

The present value of a 20 year old plantation worth $2,000/ac is $702/ac.



Not going to get into costs. Some are shared some are not.


If your numbers are correct, lease revenue provides an additional 15% incremental profit on the same asset as well as residual annual cashflow while the timber is growing and generating $0 in cashflow. As a CFO, I can tell you that based on those numbers, leasing is important to timber companies.