We can help you to purchase land plots in Russia with forest from 500 to 2000 hectares. The cost of one hectare starts from $250.
In accordance with the legislation of Russia, land plots with forest belong to the state and cannot be privately owned.
To support logging activities, the state rents out forest plots (with payment for cubic meters of growing forest) or sells the right to cut down forests on individual plots.
Each region of the Russian Federation holds annual auctions for the right to cut down forests.
Since 2020, another source of wood has appeared-agricultural land that can be privately owned.
How did the forest grow on agricultural land?
From 1990 to 2010, the bankruptcy of the last collective farms and state farms created under the USSR continued.
The reason for bankruptcy is the inefficiency of doing business, the lack of working capital, and the complete wear and tear of agricultural machinery.
The closure of collective and state farms was gradual. Agricultural enterprises did not have enough money to conduct agricultural business, state support (lending) it was missing. State farms each year reduced the area of fields where agricultural activities were carried out.
Abandoned fields became more and more and they were gradually overgrown with forest.
Currently, more than 60 million hectares of agricultural fields in the Russian Federation are overgrown with young forest.
Forest in Russian Federation in private ownership
Decree of the Government of the Russian Federation No. 1509 of 21.09.2020 amended the Legislation of the Russian Federation, which allowed the owners to register the forest grown in their fields and become the owners of the grown forest.
Within two years, each field owner must clear their fields of young forest and conduct agricultural activities, or register the forest and conduct a business for growing the forest.
Today in the Russian Federation, there is a unique situation where you can make a very profitable investment in the purchase of young forest and become the owner of a long-term and profitable business.
Mostly, the fields are overgrown with birch, but there is also aspen and alder.
Rarely are there fields that are overgrown with a fir tree or pine.
The owner has two options for doing business – full processing of the grown wood immediately after the purchase of the land plot or annual processing of 1/40 of the forest.
With the annual processing of 1/40 of the forest, the annual growth of deciduous trees will exceed the volume of annual logging and the forest will continue to grow.
The maximum volume growth of birch occurs at the age of 18-26 years.
In the first five years, the birch grows slowly, and after ten years, the growth rate can reach two meters per year (pine is less than 1 meter, spruce is 0.5-0.6 meters).
How many cubic meters of wood per 1 hectare of birch?
The height of the trees is 10 meters – 90m3
The height of the trees is 12 meters – 116m3
The height of the trees is 15 meters – 160m3
The height of the trees is 20 meters – 234m3
The height of the trees is 25 meters – 313m3
The height of the trees is 30 meters – 400m3
What kind of business can you do in a young forest?
Fields can be divided into three groups – the age of trees is 5-10 years, 10-20 years, more than 20 years.
A forest with trees up to 10 years old can be used:
1) Collecting tree buds (medicinal raw materials). The price starts from 7$/kilogram.
2) Production of feed brooms for animals-goats, rabbits, deer. The price starts from 1,2$ per piece.
3) Production of sauna brooms. The price starts from 1,6$ per piece.
A forest with trees over the age of 10 years (young forest) can be additionally used:
1) Production of birch coal (from 67$/ton).
2) Production of fuel pellets (from 80$/ton).
3) Raw materials for the production of decorative furniture.
4) Raw materials for the production of garden tools handles (the handle for a shovel costs wholesale from 0.2$).
5) Raw materials for the production of furniture slats, tare boards, euro pallets.
6) Firewood production (1 hectare of forest > 2600$).
The cost of logs with a diameter of 10 cm at the thin end of the log from 20$/m3.
The cost of planks for the manufacture of wooden boxes is 80$.
A forest with trees aged 20 years or older (medium-aged forest) can be used additionally:
1) Production of planks, beams and logs (without large sizes). From 80$/m3.
2) Selling the right to cut down their trees. From 11$/m3.
The cost of logs with a diameter of 18 cm at the thin end of the log from 27$/m3.
A forest with trees over the age of 40 (mature forest) can be additionally used:
1) Production of planks, beams and logs. From 80$/m3
2) Sale of raw materials for the production of plywood. The cost of logs for the production of plywood from 40$/m3
The minimum set of agricultural machinery for conducting a logging business includes two tractors with attachments for clearing the territory, loading and transporting timber, one trailer, chainsaws and a shed for temporary accommodation of workers.
The entire set of used tractors can be purchased for less than $ 30000.
We can help you to purchase land plots with forest from 500 to 2000 hectares. The cost of one hectare starts from $250.
Land plots with forest are located in the following regions: Tver Region, Yaroslavl Region, Ivanovo Region, Vologda Region, Novgorod Region, Pskov Region, Nizhny Novgorod Region.
Hurry up, in 1 year all the best fields will already be sold.
In 2022, the transfer of agricultural fields to the forest will end.