BIA GREEN BOX FAQS
More FAQS please contact our representatives by mail to [email protected]
-------------------------------------------------------------------------------------------
Why would you want to invest in tropical hardwood trees?
The investment outlook of timber are today as promising as they were during the twentieth century. In particular, timber is the single best performing asset of the last 30 years. From 1976-2005 timber saw average annual returns of over 13%. If you had invested $20,000 in timber in 1972, you'd be sitting on over a million dollars in 2006. That is better than stocks (70% less), real estate (75% less) and bonds (76% less). Trees in the tropics have a growth rate that is eight to ten times faster than those in cooler climates. Harvesting can take place many years earlier allowing a better return on investment. (Links to articles about the attractiveness of investments in growing trees for harvest are here. Detailed calculations of potential gross return of an investment in mahogany trees is provided here).
Trees are crucial to mankind's survival. The oxygen we breathe is released by trees and other plants - two mature trees provide enough oxygen for a family of four; trees prevent erosion; trees provide food, shelter, and material for animals and man. As trees grow they help reduce global warming by removing carbon dioxide from the air, storing carbon in the trees and the soil, and releasing oxygen into the atmosphere. One acre of trees removes 2.6 tons of carbon dioxide per year. Investing in trees helps improve our environment! Trees are a tangible real asset. You can visit our tree farms and see and touch your trees at any time.
-------------------------------------------------------------------------------------------
What is the application of mahogany?
Mahogany is known for it's durability and beauty. It is used e.g. for carving, decorative veneer, flooring, furniture, handles, interior finish, marine applications, models and patterns, musical instruments, woodturning, etc.
-------------------------------------------------------------------------------------------
Do you offer other hardwood trees apart from mahogany?
Our experience is primarily with mahogany trees, however we started in 2007 experimenting with indigenous hardwood, e.g. Gmelina Arborea (aka white teak), Pterocarpus (aka narra) and Intsia Bijuga (aka ipil or merbau). We will offer these trees starting 2010.
-------------------------------------------------------------------------------------------
When are the trees ready to harvest?
The actual harvest schedule depends on the growth rates of your mahogany trees and the market prices. The first thinning harvest of mahogany trees will be at about 5 years. There will be additional thinning harvests at about 10 and 17 years till the final harvest when the remaining trees are about 25 years old. We offer you the flexibility to decide whether to harvest your trees in any given year by providing a two to five year harvesting window. That gives you some leeway in the timing of market cycles. With this so-called option value of timber, you can leave trees in weak price regions “on the stump".
The thinning and harvest schedule of other hardwood trees is different from mahogany. The thinning and harvesting schedule of Gmelina Arborea is 10 to 12 years. Pterocarpus (aka narra) and Intsia Bijuga (aka ipil or merbau) have schedules up to 45 years.
-------------------------------------------------------------------------------------------
What does a tree cost?
The price of a mahogany tree is US$ 40 (with a minimum of 1,000 trees). We provide quantity discounts and we can adapt our payment terms to your needs. We charge a one-time maintenance fee per block of trees if you want us to keep your trees forever on our tree farm (e.g. if your investment objective is to compensate your CO2 footprint) .
The price covers the cost of the seedlings and subsequent agro forestry operations such as land preparation, planting, fertilizing, watering, weed control, pruning, fire protection and prevention, and finally administrative management and the cost of the use of the land for up to 25 years.
Contact us for a detailed offer that is tailored to your requirements.
------------------------------------------------------------------------------------------
What payment schedule do you offer?
We can adapt our payment terms to your needs: you can either pay in full or we can agree on a payment schedule that suits you better.
-------------------------------------------------------------------------------------------
What if I need cash before my trees are harvested?
You have the right to transfer the ownership of your trees to anyone you choose. We will assist you in preparing the appropriate transfer documents charging you only the fee of the notary. We also might be able to help you find a potential buyer for your trees without any cost to you. However, we can not guarantee the sale or the value of your trees.
-------------------------------------------------------------------------------------------
Can typhoons or other environmental disasters endanger my trees?
The climate observatory of the Philippines contains interesting information about the climatic risks in the different parts on the Philippines. Risk maps portraying the risk to projected rainfall change, projected temperature increase, typhoons and risk to El Niño-induced drought show that Palawan is at very low risk in all these areas.
We have selected the south of Palawan for our investment in tree farms. Our tree farms are located in hills about eight kilometers from the coast and about 100 meters above sea level. There is no risk of land sliding nor flooding in the area we chose.
------------------------------------------------------------------------------------------
Are there diseases or pests that can endanger my trees?
Trees like any other species have their natural enemies. However, our workers are routinely inspecting all of the trees in order to react promptly on any issue.
------------------------------------------------------------------------------------------
Can a fire endanger my trees?
Most large forest fires occur in dry regions. Our farms are located in a humid tropical region. There is relatively little woody debris to fuel long, hot fires and we regularly clean the farms of competing vegetation to allow for maximum growth of the trees.
-------------------------------------------------------------------------------------------
What do we guarantee?
Your trees are planted on our titled land. Nobody can come and claim our land or cut down your trees. We will plant 10% more trees than you ordered to cover mortality losses in the first two years. We guarantee in writing that we will replant or replace in the first two years at no cost to you any tree that is not growing properly for whatever reason. When you visit our tree farm any time after two years your trees are planted and you are not satisfied with the condition of your trees we will replace them with new planted trees without any cost to you.
We offer the flexibility to decide whether to harvest the trees in any given year. A two to five year window for harvesting trees gives you some leeway in the timing of market cycles. With this so-called option value of timber you can leave your trees in weak price regions “on the stump”.
Finally, if we agree that we will sell your trees we will delay deducting our compensation for managing the harvesting, processing and sale of your trees from the proceeds of the harvest until you first receive your initial investment.
------------------------------------------------------------------------------------------
How are my trees identified?
We will record your trees in our Tree Registry stating their quantity and species, their planting year, the farm where they are growing, and their exact row and column number within the farm. Your trees will also be permanently identified in the field as your trees. You will receive a signed certificate by registered mail that describes what you have bought from us and a copy of the record of your trees in our Tree Registry. You will know where your trees are if you ever want to come and visit us.
-------------------------------------------------------------------------------------------
What is an ecological easement?
Landowners place conservation easements on their property because they want to protect it beyond their lifetimes. Easements help them fulfill their vision for the future of their lands and waters. A conservation easement is a restriction placed on a piece of property to protect its ecological or open space values. It is a voluntary, legally binding agreement that limits certain types of uses or prevents development from taking place now and/ or in the future. In a conservation easement, a landowner voluntarily agrees to donate or sell certain rights associated with his or her property, such as the right to subdivide, and a private organization or public agency agrees to hold the landowner’s promise not to exercise those rights. Most conservation easements remain with the property, even if it is sold or passed on to heirs. Current and future landowners are bound to the easement’s restrictions in perpetuity. See Nature Conservancy for more information about this topic.
-------------------------------------------------------------------------------------------
Why would you want to invest in tropical hardwood trees?
The investment outlook of timber are today as promising as they were during the twentieth century. In particular, timber is the single best performing asset of the last 30 years. From 1976-2005 timber saw average annual returns of over 13%. If you had invested $20,000 in timber in 1972, you'd be sitting on over a million dollars in 2006. That is better than stocks (70% less), real estate (75% less) and bonds (76% less). Trees in the tropics have a growth rate that is eight to ten times faster than those in cooler climates. Harvesting can take place many years earlier allowing a better return on investment. (Links to articles about the attractiveness of investments in growing trees for harvest are here. Detailed calculations of potential gross return of an investment in mahogany trees is provided here).
Trees are crucial to mankind's survival. The oxygen we breathe is released by trees and other plants - two mature trees provide enough oxygen for a family of four; trees prevent erosion; trees provide food, shelter, and material for animals and man. As trees grow they help reduce global warming by removing carbon dioxide from the air, storing carbon in the trees and the soil, and releasing oxygen into the atmosphere. One acre of trees removes 2.6 tons of carbon dioxide per year. Investing in trees helps improve our environment! Trees are a tangible real asset. You can visit our tree farms and see and touch your trees at any time.
-------------------------------------------------------------------------------------------
What is the application of mahogany?
Mahogany is known for it's durability and beauty. It is used e.g. for carving, decorative veneer, flooring, furniture, handles, interior finish, marine applications, models and patterns, musical instruments, woodturning, etc.
-------------------------------------------------------------------------------------------
Do you offer other hardwood trees apart from mahogany?
Our experience is primarily with mahogany trees, however we started in 2007 experimenting with indigenous hardwood, e.g. Gmelina Arborea (aka white teak), Pterocarpus (aka narra) and Intsia Bijuga (aka ipil or merbau). We will offer these trees starting 2010.
-------------------------------------------------------------------------------------------
When are the trees ready to harvest?
The actual harvest schedule depends on the growth rates of your mahogany trees and the market prices. The first thinning harvest of mahogany trees will be at about 5 years. There will be additional thinning harvests at about 10 and 17 years till the final harvest when the remaining trees are about 25 years old. We offer you the flexibility to decide whether to harvest your trees in any given year by providing a two to five year harvesting window. That gives you some leeway in the timing of market cycles. With this so-called option value of timber, you can leave trees in weak price regions “on the stump".
The thinning and harvest schedule of other hardwood trees is different from mahogany. The thinning and harvesting schedule of Gmelina Arborea is 10 to 12 years. Pterocarpus (aka narra) and Intsia Bijuga (aka ipil or merbau) have schedules up to 45 years.
-------------------------------------------------------------------------------------------
What does a tree cost?
The price of a mahogany tree is US$ 40 (with a minimum of 1,000 trees). We provide quantity discounts and we can adapt our payment terms to your needs. We charge a one-time maintenance fee per block of trees if you want us to keep your trees forever on our tree farm (e.g. if your investment objective is to compensate your CO2 footprint) .
The price covers the cost of the seedlings and subsequent agro forestry operations such as land preparation, planting, fertilizing, watering, weed control, pruning, fire protection and prevention, and finally administrative management and the cost of the use of the land for up to 25 years.
Contact us for a detailed offer that is tailored to your requirements.
------------------------------------------------------------------------------------------
What payment schedule do you offer?
We can adapt our payment terms to your needs: you can either pay in full or we can agree on a payment schedule that suits you better.
-------------------------------------------------------------------------------------------
What if I need cash before my trees are harvested?
You have the right to transfer the ownership of your trees to anyone you choose. We will assist you in preparing the appropriate transfer documents charging you only the fee of the notary. We also might be able to help you find a potential buyer for your trees without any cost to you. However, we can not guarantee the sale or the value of your trees.
-------------------------------------------------------------------------------------------
Can typhoons or other environmental disasters endanger my trees?
The climate observatory of the Philippines contains interesting information about the climatic risks in the different parts on the Philippines. Risk maps portraying the risk to projected rainfall change, projected temperature increase, typhoons and risk to El Niño-induced drought show that Palawan is at very low risk in all these areas.
We have selected the south of Palawan for our investment in tree farms. Our tree farms are located in hills about eight kilometers from the coast and about 100 meters above sea level. There is no risk of land sliding nor flooding in the area we chose.
------------------------------------------------------------------------------------------
Are there diseases or pests that can endanger my trees?
Trees like any other species have their natural enemies. However, our workers are routinely inspecting all of the trees in order to react promptly on any issue.
------------------------------------------------------------------------------------------
Can a fire endanger my trees?
Most large forest fires occur in dry regions. Our farms are located in a humid tropical region. There is relatively little woody debris to fuel long, hot fires and we regularly clean the farms of competing vegetation to allow for maximum growth of the trees.
-------------------------------------------------------------------------------------------
What do we guarantee?
Your trees are planted on our titled land. Nobody can come and claim our land or cut down your trees. We will plant 10% more trees than you ordered to cover mortality losses in the first two years. We guarantee in writing that we will replant or replace in the first two years at no cost to you any tree that is not growing properly for whatever reason. When you visit our tree farm any time after two years your trees are planted and you are not satisfied with the condition of your trees we will replace them with new planted trees without any cost to you.
We offer the flexibility to decide whether to harvest the trees in any given year. A two to five year window for harvesting trees gives you some leeway in the timing of market cycles. With this so-called option value of timber you can leave your trees in weak price regions “on the stump”.
Finally, if we agree that we will sell your trees we will delay deducting our compensation for managing the harvesting, processing and sale of your trees from the proceeds of the harvest until you first receive your initial investment.
------------------------------------------------------------------------------------------
How are my trees identified?
We will record your trees in our Tree Registry stating their quantity and species, their planting year, the farm where they are growing, and their exact row and column number within the farm. Your trees will also be permanently identified in the field as your trees. You will receive a signed certificate by registered mail that describes what you have bought from us and a copy of the record of your trees in our Tree Registry. You will know where your trees are if you ever want to come and visit us.
-------------------------------------------------------------------------------------------
What is an ecological easement?
Landowners place conservation easements on their property because they want to protect it beyond their lifetimes. Easements help them fulfill their vision for the future of their lands and waters. A conservation easement is a restriction placed on a piece of property to protect its ecological or open space values. It is a voluntary, legally binding agreement that limits certain types of uses or prevents development from taking place now and/ or in the future. In a conservation easement, a landowner voluntarily agrees to donate or sell certain rights associated with his or her property, such as the right to subdivide, and a private organization or public agency agrees to hold the landowner’s promise not to exercise those rights. Most conservation easements remain with the property, even if it is sold or passed on to heirs. Current and future landowners are bound to the easement’s restrictions in perpetuity. See Nature Conservancy for more information about this topic.