Introduction

In our experience, the decision to reforest your real estate can be a highly personal one, often arising from reasons which go beyond the obvious profit motive. And, once the trees are in the ground, they'll keep growing on you for as long as you own your land-and then some.

Having said that, we at LA feel positively bullish about re-converting cow pasture into forest. And we think a lot of landowners in Costa Rica are likely to find their own reasons to agree. Because no matter what angle you approach it from, reforestation looks like a winner. That's why we are devoting an entire section to this Special Services Land Assurance option. Consider its following wide-ranging advantages:

• Costs relatively little to plant on a per hectare basis.
• Requires little initial maintenance, and increasingly less over time.
• Provides tax-free & residency incentives from the government.
• Boosts, literally overnight, the value of the land.
• Keeps appreciating steadily as "capital in the ground" while largely left alone.
• Represents a tangibly satisfying investment whose ecological impact an owner can feel proud of.

Reforestation Compared to Tree Farming

Reforestation means literally re-creating a natural forest. The concept is by no means the same as tree farming, which typically consists of a mono-culture, like mahogany, planted in rows. The differences between the two are important, and worth noting.

As any environmentalist can tell you, true reforestation is preferable to mono-cultural tree farming from an ecological perspective. The former can actually bring back the flora and fauna of the rainforest, especially if started adjacent to pre-existing intact jungle. On the other hand, a field containing all the same species of tree will never evolve to approximate natural jungle, for obvious reasons.

But does that make tree farming wrong? We emphatically don't think so. While it may not be as ecologically "correct" as reforestation, a plantation of hardwood trees reduces the pressure to log primary rainforest when its "crop" begins to be harvested. Its root systems also help stem soil erosion, and its shade cover can bring water back to dried out summer streams. Moreover, when it is planted on previously deforested land which has become burned-out cow pasture of little or no value to nature or humanity, a tree farm is clearly a better alternative than leaving the land to the weeds.

Wherever appropriate, it is Land Assurance's policy to present our members with a viable choice between true reforestation and (the much more common approach of) tree farming. If both options are feasible, we believe that reforestation should be seriously considered. The main reason is our conviction that pioneering the long view on behalf of the environment will, inevitably, yield positive results for owner and environment alike. With world demographic projections pitting a booming population of humans against an ever-shrinking supply of natural tropical hardwoods, you needn't be a visionary to realize that the future value of good hardwoods is bound to skyrocket-especially those which have been harvested from "ecological" projects.

In either case, whether you were to choose tree farming or reforestation, or some combination of both, the many personal rewards, be they spiritual or tangible, are for the individual owner to discover-and enjoy.

Why Consider Reforestation

As touched on above, there are a multitude of motives for reforestation (for ease of reference, we use the term herein to include tree farming). Many of them are best left to you; the following lists several of the more significant and tangible reasons.

Immediate Surge in Value of Land

One local businessman, whose name we can provide upon request, recently offered to sell us 17 inland acres of 12 year old teak trees for a cool one million dollars. Whether the land is worth that much is not the issue; the point is that you don't have to wait until your trees approach maturity to reap the financial benefits of reforestation.

Residency and Tax-Free Government Incentives

Within the next few years, the government has projected that Costa Rica will need to begin importing hardwood to meet local demand, which is why it currently awards generous benefits to owners of reforested private property. Certification of land as a tree farm entitles the owner to indefinite tax-free ownership-no taxes of the property, nor of future lumber profits. Another benefit is prompt squatter eviction by the government.

Low Start-up and Maintenance Costs

Maintenance consists of periodic weed-suppression during the first few rainy seasons, after which the trees are tall and shady enough to crowd out the weeds on their own. Thereafter, occasional branch trimming is the main necessity. Due to low labor costs, the annual expense per hectare is low initially, and even lower after 3-5 years.

How to find out if reforestation is right for you?

The main factor is of course the type and condition of the land you own. The way to begin is to have an analysis done by an agroforestry expert, including a soils study, a precipitation report, etc. Ask us for details if you are interested.