The Recovery of the Timber Market: Current Trends and Future Outlooks

The recovery of the U.S. timber market is in full swing thanks to the recent spike in single-family housing construction and remodeling across the country.  Housing starts from last year eclipsed a 20% rebound threshold and this figure is predicted to approach 30% by the end of the 2013.  This improvement in the housing sector has directly impacted the unemployment rate in the logging industry which is down 3.5% this year in part to the reopening of several sawmills throughout the U.S. [1]

The re-opening of U.S. sawmills is not the only indicator that the logging industry in taking big strides forward.  According to Plum Creek CEO Rick Holley:

“[m]ill owners are investing significant capital today in their facilities to improve efficiency and increase their future production capacity. Capital investment translates directly into a stronger customer base and increased demand for our logs in the future. This gives us great confidence in our ability to grow our earnings and cash flow from our core timber business as the recovery continues. [2]

Plum Creek recently invested $72 million in a 46,000 acre acquisition in Georgia and Alabama in April of this year.[3]  This transaction is a quality indicator that the southeast timber market offers great potential for timber investors of all scales.

In addition to the current domestic housing recovery, the U.S. timber market’s growth has been compounded by three non-domestic trends: 1) An ongoing mountain pine beetle epidemic in British Columbia that is having a devastating impact on harvest levels; 2) Increased Chinese demand for American lumber needed for a housing boom; and 3) the growth of the U.S. wood pellet market that is playing a large role in assisting Europe with meeting renewable energy goals.[4]  British Columbia has lost over 50% of their merchantable pine trees to beetles and Canada’s 25% share of the U.S. market is expected to plummet and remain below historical trends for decades.  Meanwhile, the current demand for lumber in China exceeds the country’s supply of standing timber: poor timber management and illegal harvesting in the past has resulted in a shortage of supply.[5]  This demand is expected to increase by 20% in as few as five years and the impacts on the U.S. timber market will most likely be felt on a nation-wide basis.[6] The circumstances surrounding the scenarios in China, Canada, and Europe point to major implications on the U.S timber market for many years to come and a positive long term outlook is therefore a legitimate possibility assuming the domestic housing recovery continues moving forward.

On the local level the substantial amount of rainfall over the summer months has affected South Carolina’s timber market.  Several upstate South Carolina counties have already surpassed annual averages and the logging industry in this region has all but grinded to a halt due to accessibility issues.  A few landowners are rolling the dice to take advantage of great prices due to lumber shortages in the mills but most timber harvests planned for the summer have been postponed until drier conditions are available.  Looking ahead, the future of South Carolina’s timber industry shows great potential for a promising long term outlook.  A recent study on South Carolina’s forests revealed that over the last five year many private landowners delayed the harvest of mature timber – holding out for the recovery of timber prices.[7]  This trend has created a scenario of an abundance of existing sawtimber ready for harvest.  Now that timber price are recovering expect this large supply of wood to have a major impact on the market … “an additional 4-8 million tons of wood will be harvested above South Carolina’s current annual total of more than 20 million tons, an increase of 20% to 40% by 2020.”[8]  The result of this escalated harvest rate will ultimately lead to the highest levels of replanting trees since the 1980’s.  Timberland owners should therefore be keeping a close eye on the current status of the farm bill as funds may be available to assist with the cost of planting new seedlings through Conservation Reserve Programs (CRP).



[2] http://www.plumcreek.com/Investors/nbspNewsandEvents/tabid/60/Default.aspx

[3] http://www.plumcreek.com/Investors/nbspNewsandEvents/tabid/60/Default.aspx

[4] http://www.macon.com/2013/09/02/2641020/the-growing-economy-has-roots.html

[6] http://www.macon.com/2013/09/02/2641020/the-growing-economy-has-roots.html

[7] http://www.state.sc.us/forest/b090913.htm

[8] http://www.state.sc.us/forest/b090913.htm

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Huff Creek 2013 2nd Edition Newsletter

Huff Creek Properties has released our 2nd Edition 2013 Newsletter.  The highlights include an article on Megaregions, a new predator management permit available to South Carolina Residents, and a delicious venison pasta tenderloin!

Huff Creek Newsletter 2013 2nd Edition (Website) – low res

 

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New Listing – 168.86 Acres on Old Easley Highway

This 168.86+/- acre tract is located approximately 1.20 miles west of the city limits of Greenville, SC. The property is zoned S-1 (Services District) along the 3,700 feet of Old Easley Highway frontage and R-S (Residential Suburban) on the remainder of the property.

A tract of this size and location has excellent investment and/or development potential. The property is very reasonably priced at just under $15K/acre and has access to all utilities.

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Price Reduction: 150+/- Acre Nation Farm (Abbeville)

541 Nation Road, Abbeville, South Carolina

Great recreational opportunities for Deer, Turkey, Dove, and Ducks on Lake Russell.

The property contains well-maintained roads and has a gently sloping topography from the 1920’s Farm House down to the edge of Lake Russell.

Additional Acreage Also Available

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451+/- Acres River’s Edge: Sold

 

Huff Creek Properties would like to announce the sale of the River’s Edge listing and congratulate its new possessors.

Rivers Edge consists of 451+/- pristine acres, complete with a custom built 6,000 square foot lodge, in the southwest corner of Chester County, SC. This magnificent property stretches for close to one mile along the Sandy River which feeds into the Broad River approximately one mile from the southern boundary of Rivers Edge. The landscape of the property is extraordinary – gently rolling hills of merchantable loblolly pine stands that have been thinned twice and are separated by beautiful hardwood draws including one that drains into the river and one that is adjacent to the twelve acre pond. This pond, which has a maximum depth of thirty feet, was stocked with Tiger Bass approximately six years ago and like the rest of the property has been under an intense management plan since that time. Beautiful hardwood bottoms run along the river and two large food plots (4 & 2 acres) have been implemented adjacent to these hardwood bottoms. Rivers Edge has a total of twelve food plots that are easily accessible by an excellent road system and have been planted annually for the past six years. Three of these food plots can be hunted in a custom built, enclosed tower stand that remain with property.

The lodge at Rivers Edge is truly exceptional. A spacious garage provides all the room you need for ATV’s, hunting gear, deer stands, decoys, etc. The first floor consists of a large, open kitchen and living area that includes a stone fire place. This main room is surrounded by three bedrooms (including a master with master bath) and a sun room. The second floor offers a separate living area accessed by a stairwell from the garage that has its own bedroom, bathroom, and game room. Outside, a covered patio wraps around the lodge, creating the perfect setting for outdoor dining and gathering.

Rivers Edge is also located just on the inside of the northeastern boundary line of the Enoree Ranger District of the Sumter National Forest – approximately one hour from Greenville, Columbia, and Charlotte. This district consists of 170,000 acres throughout five counties in South Carolina and offers excellent outdoor recreational opportunities including hunting, fishing, hiking, camping, canoeing, horseback riding, and mountain biking.

Rivers Edge is a premiere property of Upstate South Carolina that offers a wonderful combination of hunting, fishing, investment, and recreational opportunities. The owner’s dedication to timber and wildlife management has produced unbelievable results that have transformed this property into a true sportsman’s paradise where the southeastern outdoor heritage can be passed down to the next generation. The price has recently been reduced to $3,104/acre – call today for more information one of the area’s finest turn-key estates!

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Major Price Reduction: 368+/- Acres on Burns Road

 

Huff Creek Properties would like to announce a price reduction on our Burns Road listing. This stunning 368+/- acre property stretches for 1.5 miles through the foothills of the southern Blue Ridge Mountains in northern Greenville County. With a maximum elevation of 1,500 ft. this property offers great views of the surrounding countryside. Located just 15 miles from the heart of downtown Greenville, SC this tract would make an ideal country retreat with all the conveniences of town just minutes away.

Several creek systems flow into and out of Dysart Lake which is located near the center of the property. This 7+/- acre pond supports flowing water that runs throughout the entire 368+/- acres and supports healthy populations of wildlife. The bottom 250+/- acres of the property consists almost entirely of contiguous hardwoods with existing trails that provide good access.

Towards the northern property boundary is a power line that bisects the property. It runs for approximately 1,000 yards and offers close to 12 acres of open land that is suitable for planting a dove field and/or food plots and provides excellent hunting opportunities.

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47+/- Acres on Highway 101 in Landrum, SC: Sold

 

Huff Creek Properties would like to announce the sale of our Highway 101 listing.

This 47 acre tract is located in Landrum, SC just over a mile south of the intersection of Highway 11 & Highway 101. The actual parcel is 52 acres – the owners wish to retain a 5 acre parcel along the paved road. The remaining 47 acres are completely wooded and a natural spring fed creek starts towards the center of the property and flows all the way across the boundary line. The topography of the property consists of two ridges that run parallel to the creek and offer excellent home sites along the ridge tops – one of which has views of Glassy Mountain.
Located a short 30 minute drive from downtown Greenville, this property would make an excellent country estate. Just across Highway 101 is the well manicured campus of the Blue Ridge Christian Academy Campus which has great aesthetic features for a neighboring property. The asking price is $6,000/acre – call today to schedule a private showing.

 

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Huff Creek Properties 2013 First Quarter Newsletter

Huff Creek Protperties has released our 2013 First Edition Newsletter.  Click on the link below to read about the current land market, new & featured listings, new hunting rules & wild game recipes, and more!

http://www.huffcreekproperties.com/newsletters/Huff%20Creek%20Newsletter%202013%20First%20Edition%20(Website).pdf

 

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Major Price Reduction on Lake Greenwood Tract – 756 Acres

The asking price on our 756 acre listing on Lake Greenwood has been reduced by $550K and is now $2,250,000.  This price comes to $2,976/acre.

This lakefront tract boasts beautiful stretches of hardwood drains and ridges surrounded by large areas of 3 – 5 year old clear cut. Healthy numbers of deer and turkeys provide excellent hunting opportunities and this area of Laurens County is gaining a reputation for producing huge bucks. Several large, low-lying hardwood creek bottoms could be easily converted into green tree reservoirs that would be located a few hundred yards from the 11,400 acres Lake Greenwood. The potential to hold ducks is there! Converting one of the large ares of clear cut into a dove field presents another opportunity for wing shooting. This property has been pre-qualified for a conservation easement and would be an excellent opportunity to protect a very large contiguous lakefront parcel.

This property has great potential from an investment standpoint. An extensive road system is in place and makes accessing the entire property very convenient. The tract, which boasts 5,000 feet of lake frontage, also provides convenient access to Lake Greenwood and would be ideal for a conservation-oriented neighborhood development on Lake Greenwood.

Located less than 40 mils from downtown Greenville, SC and less than 10 miles from Greenwood, SC!

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Major Price Reduction on 255 Acres on Chestnut Mountain in Northern Greenville County

Huff Creek Properties would like to announce the most recent price reduction on our Arrowhead Ridge listing.  This magnificent 255+/- acre property consists almost entirely of mature hardwoods and sits atop Chestnut Mountain just north of Travelers Rest in Greenville County, SC and the asking price has been lowered to $740K ($2,902/acre).

The property, which is one mile south of 18,000 acres of undeveloped mountain forest surrounding the North Saluda Reservoir, is an absolute haven for Eastern wild turkeys and spending a spring day turkey hunting on Arrowhead Ridge is a remarkable experience.  The 3/4 mile long ridge road is a magnet for mature Toms – over a 90% success rate on longbeards over the last three years of hunting!

If you are looking for a recreational tract close to Greenville, SC (less than 30 minutes) with great investment potential and world class turkey hunting call us at 864-232-9040 or  visit www.huffcreekproperties.com!

 

 

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