A US environmental organisation plans to go into the forestry business by buying up parcels of land and selectively logging.
Ecotrust wants to buy land in California, Oregon and Washington ranging in size between 1,000-20,000 acres.
The group was recently awarded US$50m in new market tax credits by the US treasury department in a move designed to boost new markets. The credits will allow Ecotrust, through its newly-formed business arm Ecotrust Forests LLC, to give investors a better return for their money.
Investors can claim 39% of the amount placed with the company in federal income tax credits over a seven-year period.
Ecotrust said current methods of forest ownership harm the long-term health of timber communities and the forests, while big timber companies are also selling off their forestlands due to competition from plantations in fast-growing, low-cost regions.
The group believes large, high-value trees can be steadily harvested for years within a long-term forest management plan, rather than clear-cutting methods favoured by investors seeking short-term returns.
