Private Investment in American forestland can take years to realize significant income while management costs are being incurred every year. An investment in timberland can be undermined by low forest liquidity and risks from wildfire, insects, and disease. Simply put, a forest is hard to sell quickly but can be destroyed immediately.
Here is a profile of the American timber tax payer and the burden of timber tax: How Timber Owners are Taxed on Timber in the United States
An ill-conceived taxing policy can further discourage forestland investments. Properly constructed taxes are important to insure reasonable returns from forestland investments and are necessary to avoid a reduction in timberland investment and further loss of beneficial American forests.
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