Tree Farms

[Shivas Irons]

I know I'm going out on a limb here ...but does anyone know anything about, or have any experience in investing in tree farms?

[rancherJ]

Local? International? Purchasing property? Hardwood? Softwoods? Mature?
Looking for tax breaks?

[Shivas Irons]

Preferably local.I'm always looking for tax breaks, but I'm really looking for small time, sound investments to hold outside of my regular portfolio and I was wondering if investing in tree farming makes any sense.

[SGH]

In regards to this providing a tax break, it's really not that advantageous. Farm losses can qualify as regular losses (applicable against your ordinary/employment income) to reduce your taxes. However, for that to happen, the farm would have to lose money (would not make for a good investment). As for what qualifies as a farm, I think you may have own the majority of a farm, not have an investment in a current operation - but I could be wrong about that. The tax breaks for farming are good if you already have a crop farm and you hold a full-time job in addition to the crops. Other than that, the breaks are significantly limited.

As for the actual investment, I have no idea - I'm of no help there.

[g8r]

If you are in Southern Ontario, avoid ash and maple.

http://www.inspection.gc.ca/english/.../agrplae.shtml

http://www.inspection.gc.ca/english/...sialonge.shtml

[sharkshooter]

If you want to reduce your taxes, buy a RRSP or make a charitable donation.

[rancherJ]

"tree farms" traditionally have allowed the land they are on to qualify for property tax exemptions. As an investment, purchasing a parcel of land or a home with significant acreage and planting a desireable species can make long term sense. If you also have another use for the property it can be fun too. ie hunting, AtVing, paintball, hiking
There is considerable work involved in the early stages, however the cost of tree stock is very minimal.