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Wood Energy Plantations
Accelerated growth and local proximity are potential great advantages in wood energy trends. Posted on June 19, 2013 by Bill Cook, Michigan State University Extension Wood energy plantations may be a common landscape feature of the future. Or not. On the positive side, better-controlled wood quality and accelerated growth rate can be placed closer to wood energy mills. Volumes per acre are several times higher than natural forests. Transportation costs can be substantially reduced, which are a large part of the cost of wood procurement. On the negative side, plantations are expensive and some of the necessary commercial infrastructure and technology have yet to be developed. At this time, few markets are available to purchase plantation-grown wood. Also, resistance to insects and diseases becomes more important when planting large areas of genetically similar stock. Many wood energy production systems perform better by using wood with a particular set of specifications. Growing mill-tailored wood may be a viable option, similar to the former large wood plantations in central Minnesota that helped feed a pulp and paper mill. There many other examples across the USA and worldwide. Doing the research to figure out which genetic mix grows best on particular sites will be critical in achieving economic viability. In Michigan, there are about 8 million acres of retired farmland. A portion of that farmland may be eligible for wood energy plantations. This puts land back to work and could help support a growing Michigan industry. It is unlikely that natural forest would be converted to plantations. Varieties of willow and poplar currently appear to be the most likely candidates. Poplar may yield more useable wood than willow over time and offer the opportunity for other products. On the other hand, willow rotations occur about every three years and poplar rotations every 6-8 years. An investor may see some return in less time with willow. Poplar can be harvested with current technology. Willow will need to have a different technology imported and modified. Both species require specialized planting and tending technology. And, of course, commercial production of planting stock will need to be ramped up. Both species are planted using branch segments (eight-inch sticks), not seed. Establishing a wood energy plantation involves a process and spacing more similar to agricultural crops than to forestry. However, after the first year or two, inputs will be minimal for several decades, unlike the annual inputs for agriculture. The need for special machinery and skills might be met by a new breed of contractor or a cooperative. Few landowners will be able to afford the expense of their own planting and harvesting machinery. Wood is one form of cellulosic plant material. Cellulose is the main structural ingredient of plants. Agricultural residues may provide additional cellulosic feedstock. So might specially-grown crops such as switchgrass, Miscanthus, and other grasses. Depending upon the needs of a particular energy producer, agricultural feedstocks offer opportunities, too. However, agricultural crops have higher ash and chemical content. They are also available only certain times of the year, or need to be stored, which would be an additional cost. Annual crops require fairly high annual energy and chemical inputs. Perennial grasses have inputs more similar to wood energy plantations. Wood energy research has been ongoing for decades, but the pace, urgency, and budgets have increased over the past few years. Both Michigan State University Extension and MTU are involved with wood energy plantation research, as well as cooperators across North America and from several European nations. Research plantations dot the landscape across much of the state. The first commercial plantation in Michigan was established in 2009 in Marquette County. The drive to reduce fossil fuel consumption will likely include wood energy among the various replacement technologies. And, wood is one of the options for which Michigan holds trump cards. This article was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To contact an expert in your area, visit http://expert.msue.msu.edu , or call 888-MSUE4MI (888-678-3464). Continue reading
Expats Eye Foreign Farmland Investment
Taylor Scott International Continue reading
US Property Prices Still Historically Low
Axis Property Investment, a firm located in the United Kingdom (U.K.), is telling clients that now is the time to invest in U.S. property provided the historically low interest rates and property bargains. The firm quotes rates as low as 3.6% for 30-year mortgages, which it says are even lower than what they were in the 1950s. Experts there warn, however, that buying property in the U.S. is different from buying in the U.K., particularly when it comes to pricing and the warranties that come with the home. Buyers are advised to do thorough research before jumping into any foreign market. For more on this continue reading the following article from Property Wire . A 30 year fixed mortgage currently costs as little as 3.6% in interest to service each year and this has made houses more affordable and driven a big rise both in mortgage applications and in refinancing to cheaper deals, experts claim. For those considering property investment in the US, the climate is favorable and hotting up. Low, but rising prices and increasing average rental rates make it possible to achieve much better yields than in the UK, says Axis Property Investment. It also points out that rental vacancies are now at their lowest levels in over a decade, while the homeowner vacancy rate is at its lowest point since March 2006. Selected regions in the US can easily give a rental yield of well above 5%. It points out that properties are often sold as seen and you can be taking on a property with associated problems either in terms of the fabric of the building or debts linked to the address which may be passed onto the new owner. It believes that more research needs to be done into prices before buying as property valuation in the US is different. Other issues worth checking if you are renting out the property is where there is a tenant before you buy. ‘A pre-tenanted property means there will be no initial void period and your income stream will start to flow into your account. Furthermore, there is also associated hassle and stress with an empty property such as the chance of vandalism, or the higher insurance premiums you may have to pay for an empty unit,’ the report says. The firm also recommends that overseas buyers commission an independent property inspection report and for investors to have a realistic exit strategy. ‘We are currently at the bottom of the US property cycle just at the point where prices are starting to rise. In order to derive the greatest overall returns, you should be looking to sell at the top of the cycle and this will take some time to arrive, maybe even a decade from now,’ it says. Continue reading
