As you are the owner of your plot of land with Robinia trees, it could be very profitable to keep your plot and Robinia for a second rotation. Your high costs such as buying land and Robinia trees have been made during the first rotation. This means you have fewer costs for the second rotation of 10 years. This will make your returns for your second rotation ever higher than the first.
Contactform
Your projected overall return after the second rotation of 10 years:
|
Plot Size
|
Number of Trees
|
Total Investment
|
Projected Return
|
Return Per Year Compounded
|
| 1 Hectare |
6,000 |
|
|
|
NB: In the table above we have calculated price increases of 6% per year for your Robinia poles, 10% for your biomass (renewable energy) and 8% for your land.
This results in a return of 27% per year.
Costs for your second 10 year rotation would consist off:
- preparing and cleaning up the land; removing all dead trees/ branches etc.
- planting of new trees to replace the ones that have died; this would be about 1,000 new trees
- maintenance during first four years
- fence repair and other measures to keep the wildlife out
- harvesting after 10 years
Your projected overall return after two rotations:
|
Plot Size
|
Number of Trees
|
Total Investment
|
Projected Return
|
Return Per Year Compounded
|
| 1 Hectare |
12,000 |
|
|
|
NB: In the table above we have calculated price increases of 6% per year for your Robinia poles, 10% for your biomass (renewable energy) and 8% for your land.
This results in an overall return of 19% per year.
