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I know that forestry in the 90s was a marginal industry with little competition, so the returns were high, and the risk was that.
First, the cycle is long, generally speaking, it takes more than 5 years to get a return. In recent years, due to the development of the Internet, the demand for paper has stabilized and will not increase much, and the marginal profit has decreased a lot.
Second, there is an interest rate risk when exporting, and it is difficult to change the interest rate after five years, but it is generally believed that the RMB is under great appreciation pressure, assuming that the RMB interest rate increases by 10% after five years, then your investment return will shrink accordingly.
It's a good idea to do some research before you invest, to see how supply and demand are right now, how many companies are doing this industry, and so on.
It depends on what project you invest in, and now the state has introduced a lot of forestry projects, such as the national project of returning farmland to forest directly aimed at the masses, including returning farmland to forest, afforestation of barren mountains suitable for forests, closing mountains for afforestation, such as returning farmland to forests policy: non-basic farmland non-barren mountains and wasteland, planting ecological forests with a slope of more than 25 degrees, the state subsidizes 230 yuan in cash per mu of land every year (including 210 yuan in grain funds, 20 yuan in cash), and 50 yuan in the first year of seedling subsidies, and a temporary subsidy of 8 years ( The state has not yet introduced relevant policies for subsidies after 8 years, and it is estimated that measures to benefit the people will be introduced); The subsidy for planting economic forests is the same, but the subsidy period is 5 years, and the subsidy will not be given after 5 years, because economic forests can see benefits in a short time. Those included in the land returned to farmland are permanent forest land.
In addition, the ecological forest is owned by individuals after it is matured, and it can be felled and bought and sold after going through the relevant procedures. After that, the corresponding tree species will be planted.
These subsidies are very beneficial to the people. And what the state wants is ecological efficiency. It is a very good way to lease land for afforestation and include it in the project of returning farmland to forests if the corresponding conditions are met.
Of course, timber has been rising, so as long as you plant forests, the remuneration you get in just a few years is also very considerable.
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Hello! The biggest risk of investing in forest land is slowness, the biggest advantage is stability, and the biggest trouble is forest protection.
It is best to buy small saplings for forest land investment, or breed saplings by yourself, and combine forest, shrubs, grasses, and breeding, and find a way from under the forest when you can't get income from the forest.
In the long run, it is best to make rain collection ponds, which can collect rainwater in summer, because the biggest difficulty in the development of cash crop cultivation is water.
Mine, are you still satisfied?
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