Costa Rica Real Estate and reforestation properties

Outline of this page:

Our Plantation Projects in Costa Rica
1. Finca San Buenas
  1. The Real Estate Investment
  2. The Plantation
    1. Trees planted to date
    2. Condition and health of trees planted to date
2. Our Other Plantation Projects in Costa Rica
Our Ecological Approach to Reforestation
Mesoamerican Biological Corridor Essay

Note: The following information about our own plantation is meant to provide a detailed account of how we got started on reforestation in Costa Rica, and how well things have gone for us since then.

Our Plantation

Current Plantation-Finca San Buenas

The Property

Background on the purchase
We came to Costa Rica the first time in 1994 to buy a beach house. We quickly realized that the most precious real estate was not right on the beach but rather in the mountains that face the beach. However, we also realized that these mountains were being stripped by loggers and cattle farmers. During the second visit to Costa Rica we began scouring the countryside for real estate concentrating on mountain farms as opposed to beach lots. It was on this trip that we discovered the area south of Dominical and we discovered the benefits of reforestation. With no road to speak of, travelling on the trail was tough but adventurous.

We purchased Finca San Buenas in early 1994. The seller was the original and only owner, a 75 year old Costa Rican campesino who had staked out the property over 50 years ago, and whose many children were all born on the land. He immediately impressed us with his integrity and great respect for nature; unlike many rural farmers, he viewed the forest as worthy of preservation, rather than a mere obstacle to cultivation. For instance, when we mentioned that the large troop of howler monkeys living near his house seemed unafraid of us, he said he had done all he could to protect them, including even threatening to sue anyone who defied his ban on hunting within his land. He had also begun his own reforestation project with a small stand of Melina.

Our first move was to recruit his eldest son, Liandro Herrera H., for the job of farm administrator. In addition to an above-average salary and Social Security benefits for him and his family, our offer included a fixed percentage of any profits from reforestation projects on the farm. This would be payable to him and/or his family in perpetuity, regardless of whether he continued to work for us in the future. Since the property had been such a big part of his and his father's family for so long, we felt that granting Liandro a non-revocable percentage of any future income was the right thing to do. He accepted the job, and has been running the farm ever since.

In hindsight, it was clearly one of the best decisions we've ever made. The mutual loyalty and good will incentivized by this arrangement since then has reaffirmed our belief many times over that treating the local people as our partners in carrying out our work is the only way to go. We thus intend to follow this model on all our projects.

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Description of the real estate

Finca San Buenas comprises approximately 95 hectares (235 acres) on the south central coast of Costa Rica. The farm's central valley consists of an entire watershed, surrounded by mountainous primary and secondary growth rainforest. Of that total, between 1994 and 1996 we reforested approximately 10 hectares; in May, 2001, we converted old pasture into another 5 has. of organic, multi-specied hardwood. Each of the following years since then, we have converted another 4 hectares.

The property features:
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Maps of region
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The Plantation

Trees planted to date
We planted three types of hardwoods between 1994 and 1997, on 10 hectares of land. Since we put in 1,100 saplings per ha., we then had roughly 11,000 trees under management. We used a "patchwork quilt" design, consisting of numerous different plots adjacent to one another, with each plot containing one of the three hardwoods. The details:
[Note: since then, we have planted thousands more trees of multiple species, including nazareno, cocobolo, pochote, caoba, etc.]
After a good deal of research, both in the field and in the library, we settled on these three species for the following reasons.

White oliver and goncalo alves:
Note: the last two points above suggested to us that the value of their lumber was likely to increase appreciably in the years to come.
Teak:
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Condition and health of trees planted to date
Of the 10 hectares we originally planted, the quality is "good to excellent" according to two agroforestry consultants who recently inspected the plantation, as well as on our own (and Liandro's) frequent observations and measurements over the years. The more recently planted trees are also doing well, although their progress has not been studied by any independent third party. We would be happy to give any visitors a tour of these mini-plantations.

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Our Other Plantation Projects

Finca Savegre:
For many years we eyed a beautiful new hectare farm (395 acres). It features lush, fertile soil, amazing biodiversity, pristine rivers, large areas of flat land, and an adjacent 20 has. of mountainous virgin rainforest. Located in the same region as San Buenas, this property has been inspected by our consultant, Dr. Luis Ugalde, one of Costa Rica's leading plantation experts, who has pronounced it ideal for our reforestation purposes. In association with CATIE, and Dr. Luis Ugalde, we also plan to offer a research venue for gathering needed data concerning growth rates for mixed stands of native hardwood trees. We believe that compiling these data which do not exist in any accessible form anywhere in Central America will encourage future tree farmers to take a more ecological approach by giving them a predictable map for gauging profitability of planting mixed stands of trees instead of pure monocultures. A steady stream of scientists, students and volunteers from CATIE and schools around the world will undeniably provide the project with abundant expertise in agro-forestry areas.

Finca Savegre is of special interest because it is located within the Path of the Tapir, designed to connect Costa Rica's central and southern Pacific coast to the larger Mesoamerican Biological Corridor. Not only is it accessible to the Costanera Highway being completed as we speak, it is also accessible to the port of Quepos, less than thirty minutes away. There is a good ratio of arable, pasture land for planting to primary forest for preservation. Preservation of the primary forest left intact which is teeming in diverse plants and animals is critical to accomplishing the mission of connecting the remaining patches of rainforest left in this region of Costa Rica. A large river runs through the farm as well which must also be protected from further degradation by deforestation. Most importantly, this farm is situated in a region of the country where many campesinos are still struggling to make a living and can be shown that there are viable alternatives to destroying their land.

Back in 2002 we sold Finca Savegre to a client who asked us to plant 25 has. there, which we did. Species included teak, amarillon, and about 5 hectares of mixed species including mahogany and cedars.
Melina Mountain:
We have 35 has. of rainforest and gmelina plantation near the town of Ojochal, with a beautiful river and set of waterfalls. Brice and Tim bought this in 2004. The gmelina, which was 12 years old when we made the purchase, is rotting and has to be taken down in order to get any benefit from the wood (otherwise it would decompose and return all the carbon to the atmosphere). Our intention is to eventually develop spacious eco-lots, each with killer ocean views on the front or ocean side, and leave the backside with all the rainforest as a preserve forever. The building footprint of the parcels will be restricted to a maximum of ten percent of the total area, so that the remaining 90% can regenerate naturally. We do the same with every eco-development that we do.
Finca Los Cielos:
Purchased by our group in 2005, this 400 hectare beachfront beauty of a farm has 160 has. of gmelina and 90 of virgin rainforest. However, like Melina Mountain, the quality of the 14 year old gmelina is not good, and the whole thing needs to be culled, in favor of natural species from Costa Rica. Our partners intend to build a world-class eco-resort on the property, which will guarantee that the 20 percent of the property which is primary rainforest will always be protected and preserved.

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Our Ecological Approach to Reforestation

Introduction
Not every hardwood tree plantation merits the label "ecological." From our perspective, in fact, most do not. The key concept boils down to one word: sustainability. The pros and cons of this issue are not merely hypothetical. To the contrary. The integrity of the management plan can have very real and far-reaching consequences--impacting the financial bottom line no less than nature as a whole.

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Problems inherent in non-sustainable plantations
As a rule, the large majority of commercial tree plantations consist of "monocultures," or rows upon rows of the same species. This approach is fraught with negative consequences. Over time, monocultures consistently strip the soil of essential nutrients without recycling compensating minerals. Monocultures also unbalance the pH content of the soil. And, because after the first few years, no other plants can grow between the rows, monocultures tend to suffer heavy losses of valuable topsoil via erosion and run-off. The root of these and other weaknesses associated with monocultures can be summed up in a single word, as noted above: unsustainability.

Bottom line: without a master plan allowing for long-term (indefinite) viability, the likelihood of a reforestation project meeting its economic projections will encounter major risks. Chiefly, these include plague and pest infestations, poor growth rates, and heightened exposure to storms, droughts and/or fires. And even if such a project did manage to achieve the targeted ROI for its initial investors, its final harvest at the end of the first cycle would leave nothing upon which to build, its legacy amounting to little more than wasteland.

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Advantages of sustainably designed plantations
In contrast, ecologically managed plantations aim (among other goals) to preserve and restore the soil and promote biodiversity over the long run. The results are vastly increased resistance to pests, greater probability of robust growth rates, and far less vulnerability to climatological extremes. Simply put, practicing these methods makes better business sense. And, of course, they also nourish the environment by turning deforested cow pasture into a perennial oasis of productivity.

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Our reforestation strategy
1. Growth projections for totally mixed species
  The most "ecological" approach would be to mimic nature and plant multiple hardwoods and other species side by side on the same plots of land. And, in fact, we are doing just that on an increasingly wide scale, and encouraging others to do likewise. But this approach lacks the historical data which would permit the creation of reasonably reliable growth and yield projections. The reason is that there are no such plantations anywhere in the tropical world old enough to go by.
  
  The difficulty of projecting accurate yields for multiple hardwood plots is compounded by the natural tendency of different species to grow at different rates. Over the years, this means that some trees would inevitably shade out their neighbors, thus inhibiting the latter's ability to flourish. But because there are no pertinent plantation statistics, the task of predicting which species will do what would have to rely on educated guesswork. Nor would it be of much use to look to natural forests for answers. For two main reasons: jungle growth rates are much slower than those of plantations, and hence largely irrelevant; and it is almost impossible to assess the age of most rainforest hardwoods since they tend not to produce annual rings.
  
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2. Our solution
  For investors who require growth and financial projections before getting started, we feel that the best approach is the "patchwork quilt." That means planting a variety of different hardwoods in distinct groups, thus forming a series of checkerboard parcels. By segregating our hardwoods, we circumvent the problem noted above, in which some species will tend to shade out their neighbors. This plan is also much more economical, since the trees within the different plots can be managed according to a predictable and consistent schedule. Finally, this approach also diminishes the risks of plague or pests endemic to monocultures. The different "patchwork quilts" act as natural barriers to the spread of infestations from one plot of identical species to another of the same.
  
  Second, we plant a variety of other plants and trees among the hardwoods, including leguminous or nitrogen fixing species. These act as natural, organic fertilizers, and in time, help restore the soil. They also allow the development of root systems which prevent soil erosion, as well as upgrade land and waterways by protecting them from the rigors of tropical weather. These conditions foster the growth of natural flora and fauna, thus allowing degraded areas to regenerate as a whole. We also plant flowering and fruit-bearing trees to feed the animals, as well as trees for shelter which will never be cut. In addition, we plant trees along the banks of stream and rivers to protect these vital resources.
  
  Third, our plantations border existing secondary and primary rainforest, which will be preserved through private trust ownership. This promotes biodiversity within the plantation, and also increases natural protection from windstorms, infestations, and fires. And, of course, the more forests private individuals like yourself can help protect, the better the chances of preserving this irreplaceable resource.
  
  For those who are able or willing to do without detailed financial projections at the outset, we strongly advocate the use of a pure multicultural appraoch. Aside from all the other benefits, we have a hunch that this most natural of models will ultimately produce more than any alternative.
  
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Land Assurance's role in Mesoamerican Biological Corridor is designed to help save the Planet's Biodiversity

Experts generally agree that on a planetary basis, the number one cause of extinction is habitat destruction or degradation. This is true because the destruction of ecosystems home to plants, animals and bacteria brings with it other detrimental forces. For example, alien species and human can more easily penetrate the interiors of remaining areas. Pollution reaches closer to core populations and disease strikes to decimate the survivors. Substantial reductions in habitat area, many beyond 90 percent, have already occurred in numerous places around the world. Recent studies have shown that habitat destruction unfortunately tends to be concentrated in those regions where biodiversity is richest. According to Edward O. Wilson, renowned conservation biologist and two-time Pulitzer prize winning author of The Diversity of Life, "the relation between shrinkage of habitat area and the loss of species, either through reduction of populations to critically endangered levels or outright extinction, has been well substantiated in many studies on the effects of deforestation and other habitat conversion."

Extinctions are not due solely to the loss of living space. Separating available spaces through clear-cutting and other development has its own impact, by increasing the length of the edge of the habitat patches relative to their area. Scientists agree that fragmentation changes the physical environment of the remaining forest at least 100 meters inward from the edge. Remaining trees are vulnerable to drying and wind damage. Trees become more fragile and lose their bio-mass and deep forest plant and animal species disappear.

Those who monitor the diversity of life agree that saving ecosystems which are home to the largest numbers of distinct species is vital to the survival of future generations. Conservation movements have been taking shape around the world in an effort to slow down the spiraling numbers of extinctions. For example, Conservation International has pinpointed approximately 25 "hotspots" around the world and is gathering support in an attempt to save them. Biological corridors are also being created which focus on connecting remaining patches of natural habitats into corridors so that plants, animals, and ultimately humans, can survive.

One such biological corridor is the "Mesoamerican Biological Corridor" (MBC), which extends from southern Mexico to Columbia and biologically and culturally bridges North and South America. The initial concept of the MBC, as a focus for conservation and development projects, emerged in the 1980's and was supported by USAID, the Wildlife Conservation Society, and by the Caribbean Conservation Corporation. Today, the MBC is endorsed by Central American Presidents and is promoted and supported by hundreds of national and international actors, including the World Bank, the United Nations and the Comision Centroamericana de Ambiente and Desarrollo.

Although now interrupted in areas and under relentless pressure from agricultural interests, there still remain essentially intact strips of natural habitat joining Mexico to Columbia. The same is true for the hills and mountaintops spanning Costa Rica's southern Pacific coast where Land Assurance's projects focus. The goal now is to save and connect wherever possible what patches of rainforest remain, while repairing what has been destroyed.

Land Assurance is committed to participating in this important cooperative work. Through the local organization, ASANA or "La Asociación de Amigos de la Naturaleza del Pacifico Central y Sur" , we will link our projects with farms owned by other local landowners who, likewise, are committed to conservation of biodiversity and wilderness spaces, reparation of degraded lands and ecosystems and sustainable development for long-term local livelihoods.

ASANA is an organization of concerned people of diverse origins, most of whom live in the area of the organization's influence or own land there. They all share the same common interests of conserving and restoring the natural habitat in the southern Pacific coastal region of Costa Rica and work in cooperation with each other, the local community, government and non-governmental organizations, private donors and foundations in order to accomplish their goals. The association was formed in the early 1990's in response to the ravages being wreaked on the local natural environment with the introduction of roads, electricity and telephones. Recognizing that deforestation has compounded the loss of natural habitats in the area, ASANA's members have committed themselves to fostering education and the development of alternative, sustainable livelihoods for local people. In addition, ASANA is attempting to ameliorate the deleterious effects of deforestation, specifically fragmented ecosystems, by creating a regional biological corridor referred to as The "Path of the Tapir" or "Paso de la Danta".

ASANA's goal of uniting natural habitats along the southern Pacific coast of Costa Rica between the Savegre river to the north and the Terraba river to the south will serve multiple purposes. First, it will unite this region with the larger Mesoamerican Biological Corridor. At the same time, an extensive, unified natural habitat stretching along Costa Rica's central and southern Pacific coast to the protected areas of the OSA Peninsula will be established. This habitat will be foster tropical primary rainforests, mangroves, secondary rainforests in varying stages of regeneration and reforested areas.

We are proud to be part of ASANA's internationally recognized mission to conserve and restore the flora and fauna of Costa Rica's rich central and southern Pacific coast. We join ASANA in its commitment to develop and promote sustainable forms of development through environmental education and voluntary community and landowner involvement. Won't you join us too?

Why care?

People tend to react to the evidences of species extinction with varying stages of denial. Here are some commonly heard quips. "Extinction is natural" or " species have been dying for more than 3.5 billion years with no permanent harm to the biosphere." People argue, "evolution has always replaced extinct species with new ones."

These half-truths conceal a terrible twist. As pointed out by Edward O. Wilson, after each of the five greatest extinction spasms spaced over 400 million years at roughly 100 million year intervals, evolution required about 10 million years to restore the pre-disaster levels of diversity. This is an extremely long time for future generations to wait because of the lack of foresight and damage we are inflicting on the environment within a few decades. What people fail to realize is that the evolutionary process cannot perform as in previous ages if we continue to crowd out natural environments with artificial ones.

In another stage of denial, people ask, "Why do we need so many species anyway? Who cares about all these bugs, weeds and fungi?" We should care. Scientific studies support the conclusion that the more species living in an ecosystem, the higher its productivity and the greater its ability to withstand drought and other kinds of environmental stress. We depend on the abundance of fully functioning, diverse ecosystems, including all the creepy crawlies, to purify our water, enrich our soil, and manufacture and cleanse the air we breathe. Who knows? It stands to reason that some of these wild species which remain unidentified today could be the source of cures for deadly diseases tomorrow. Finally, we undeniably rely on diverse crops and fibers grown in threatened areas, from cocoa to resins to cashews, to sustain and enrich our very lives. The thought of destroying even more habitats, thus depriving ourselves of these good things in life should inspire even the non-believers among us to act.

The clinching argument for the protection of species, however, may in the end prove to be a moral one. Who are we to destroy the planet's Creation? Each species around us is a fine-tuned masterpiece of evolution, uniquely adapted to its environment. Species living today are thousands to millions of years old. Their genes have been tested by adversity over countless generations and have adapted to survive. Homo sapiens, in large part, have not followed suit. We have failed to live in harmony with the natural world, always trying to dominate it and break the cycle of life. Without drastic changes, we may succeed beyond our wildest dreams. It is time for us to evolve so that we, too, can survive and pass on an inhabitable planet.

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Land Assurance, Tierra Segura, S.A.

Telephone: 506-787-0291, 1-866-787-0291 (Toll Free), Fax: 506-787-0290, Email: info@LandAssurance.com

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