Invest in Colombian Timber 2021
Discover Colombian Timber VII !
Colombian Timber VII, our latest crowdfunded project and which will feature 400 hectares of forestry (Eucalyptus) plus 200 hectares of cashew.
Some of the key important points to consider:
The Opportunity – Eastern Plains of Colombia
Colombia has over 17 million hectares considered suitable for Agroindustry developments of which only 2% is currently being used.
The Eastern Plains of Colombia comprehend over 6.3 million hectares of flat, virgin savannas perfectly adequate for forestry.
Approximately 25% of this area is located in the province of Vichada, considered the region with the most suitable farmlands for forestry in Colombia given its vast extensions of flat land and excellent weather conditions.
Farmland in this region of the country is known for its excellent weather conditions, abundance of water, as well as other natural resources.
The climate is tropical with temperatures ranging between 25 and 35°C and a relative humidity of 84%. Altitude fluctuates between 70 and 120 meters above sea level, luminosity is of 2,938 hours per year and precipitations between 1,800 and 2,900 millimeters of water per year.
Each of these ideal conditions benefit the rapid development of the tree species as wood production reaches an average of 25 m3/ha/ year.
In addition, as Vichada remains a predominantly underdeveloped region, farmland can be purchased at very favorable prices, which allows a very promising land valuation potential in long-term.
Furthermore, forestry plantations in this region of the country are being heavily promoted by means of economic incentives granted by the Government such as the Forestry Incentive Certificate (Certificado de Incentivo Forestal – CIF) as well as by longstanding income tax exemptions.
The different farmlands where the forestry project is being developed were not randomly chosen but rather carefully selected, taking into consideration the fulfillment of certain mandatory criteria, such as:
- Proximity to the plantations’ main nursery and to other plantations managed / operated by the same group, thus generating economies of scale.
- Proximity to where the main road is projected to be paved and to local rivers, both of which allow for most efficient transportation costs.
- Ideal soil conditions that benefit the rapid growth of tree species. This criteria was validated with comprehensive soil feasibility studies before the negotiation of the property.
In total, 8,697 hectares (21,491 acres) have been purchased over the last 4 years, adding up to the existing portfolio of 60,000+ hectares under management by the forestry operator.