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  1. Join Date
    Oct 2002
    Posts
    10,819
    #1
    i've been thinking lately on where to invest long term (besides stocks market). as i do not have much business acumen like some guys here (nakakainggit naman kayo!) and also do not have the time to look after the business full time (OFW) i prefer something that i (used to) know and like to do. i have been looking for some farm land for tree farming, of either gmelina (paper tree) or mahogany. the gemelina will be for medium term income (5-7 years) while the mahogany for retirement (15+ years). as per the research i've done so far, gmelina can be sold for 1.5-2k per tree after 5 years, and the mahogany around 10k-15k per tree after 15 years (price varies on location, lower where there is illegal logging).

    i'm doing my computations on the over pessimistic side, lower end less 20%, so that will be 1.2k/tree for gmelina and 8k/tree for mahogany. sobrang pessimistic ba? at the spacing of 1.5 meters for gmelina and 2.5 meters for mahogany, and basing on a square planting pattern (less efficient) as against a hexagonal pattern (more efficient) to compensate for tree loss due to thinning/stunted growth/desease/typhoons (again very pessimistic at only 50+% survival rate), that's 4,400 trees/heactare for gmelina and 1600 trees/hectare for mahogany. (note: tree density increases by a factor of almost 2 using a hexagonal pattern). yield for gmelina after 5-7 years (again, pessimistic so 7 years) = 5.28M/hectare. for mahogany it's 12.8M/hectare after 15 years. i intend to plant 5 hectares to gmelina and 10 hectares to mahogany.

    price per hectare is 225-250k at the location i'm targetting (in central luzon, no illegal logging, no NPA). i will start from seeds (not seedlings, i do have the time to plant seeds) so that means minimal expense. i will also be using chicken manure for fertilizer, which i had been told is necessary if the trees are planted on low grade soil (but i will be buying land good enough for vegetables). my estimate is 300k/hectare innitial investment (land, seeds, labor) for both gmelina and mahogany plus additional 20k/year/hectare. for 7 years, total investment on the 5 hectare plot planted to gmelina will be 2.2M, yield estimate is 26M. for the 10 hectare planted to mahogany, 15 years total investment will be 6M, and yield estimate is 128M.

    would you consider this a good venture? is anyone here into tree farming? please try very hard to discourage me

  2. Join Date
    Oct 2002
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    17,338
    #2
    Quote Originally Posted by yebo View Post
    would you consider this a good venture? is anyone here into tree farming? please try very hard to discourage me
    Ipang-shopping nalang ng kotse at Apple products yung pang-investment.

    I think one major factor here is who will be manning the fort since you will be out abroad from time to time? One main factor i see in a business not going well is that it can never, ever be run by remote control. Did you also factor in maintenance or overhead costs (peso per sq./m or per hectare)? Even if there are no NPA, you still will need security from pilferage or vandalism. How will you also manage your planting and eventual harvest? I assume you will maintain do it in phases so as to maintain a cycle where almost every year or so, you can harvest? Don't forget to do your soil and other tests on the property to ensure that it is conducive to the tree crops, with consideration to erosion and the flow of water.

    I'd also suggest that your fund allotment for this will not be one where your retirement will be dependent on the outcome of this venture but more as a supplement to your retirement and for personal enjoyment/relaxation as well.

  3. Join Date
    Oct 2002
    Posts
    10,819
    #3
    yung 20k/hectare/year x 15 hectares = 300k/year will be my maintenance cost. fertilizer and labor). i will be hiring 2 people to do most of the farm chores. bantay na din sila. also my schedule is 28days overseas/28 days home, so i will be there sometimes.

    and no this is not my only retirement fund.

    yup, i do know some things needed about farming - soil, climate, weather, irrigation, drainage, topography, etc. my late father was an agriculturist and i have read many of his old books. we planted mangoes together, and raised chicken and hogs when i was young.

  4. Join Date
    Oct 2002
    Posts
    10,819
    #4
    Quote Originally Posted by vinj View Post
    Ipang-shopping nalang ng kotse at Apple products yung pang-investment.
    naghahanap nga ng reason para bumili ng 4x4 na pick up eh

  5. Join Date
    Oct 2002
    Posts
    17,338
    #5
    Quote Originally Posted by yebo View Post
    naghahanap nga ng reason para bumili ng 4x4 na pick up eh
    Kaya pala. Sa totoo lang, gusto mong bumili ng 4x4 pick-up pero ayaw pumayag ni kumander. Lusot!!! :clap:

    If you have background on the trees and overhead expenses, i guess due diligence na rin sa land and environmental factors (plotting, checking with the Bureau of Lands and RD na walang overlapping or counter claims, etc.). Mag tingin tingin ka na rin sa LGU in the area, kung madaling kausap or medyo kups, etc. Another item you can research on are crops that you can grow inbetween/below the trees so it can help with the cashflow of your farm. Maybe you can get more info as well from some NGOs, DAR, DENR and Pag-asa that can help you.

    Baka naman Hacienda Luisita na yung binibili mo. Ingat lang at baka kasama si Kris sa package.
    Last edited by vinj; April 25th, 2013 at 02:13 PM.

  6. Join Date
    Jul 2006
    Posts
    8,555
    #6
    Maganda sana ito, kaso tagal ng ROI.

  7. Join Date
    Aug 2010
    Posts
    3,527
    #7
    Quote Originally Posted by vinj View Post

    Baka naman Hacienda Luisita na yung binibili mo. Ingat lang at baka kasama si Kris sa package.
    Okay investment yan pagkasama si Kris. Isipin mo, millions of revenues agad yan annually

  8. Join Date
    Sep 2007
    Posts
    1,778
    #8
    Meron ang family ng tatay ko na mahogany farm sa zambales, eversince namatay ang lolo ko father ko na namamahala and all I can say is up to now puro palabas pa rin ang pera niya lampas 10 years na yung mga puno. What they did was sa gitna ng farm nagtanim sila ng mga puno ng mangga for income sana yun to maintain the land pero medyo hirap din dahil ang location niya sa taas ng bundok so lagi hinahangin yung mga bulaklak kaya di ganun karami ang nagiging bunga. May naging problema pa siya sa Brgy Captain na nangangamkam ng lupa sa area although nasolusyunan na niya yung problema na yun (maraming sundalo na may mga dalang mahaba lang ang katapat).
    As far as I know around 10K na puno ng mahogany nakatanim dun and 1K na puno ng mangga.

    If you want to venture into this business be prepared to spend big time and dapat kaya mo hintayin yung ROI mo ng matagal

    Additional pala... Yung pagharvest hindi rin ganun kadali kasi you need to get permits from the LGU and DENR bago ka makapagputol ng puno. And knowing how our system works additional labas nanaman ng pera sa bulsa yun. Plus don't forget Kim Henares or else.
    Last edited by Bin Diesel; April 25th, 2013 at 02:33 PM.

  9. Join Date
    Oct 2002
    Posts
    17,338
    #9
    Quote Originally Posted by jhnkvn View Post
    Okay investment yan pagkasama si Kris. Isipin mo, millions of revenues agad yan annually
    Kaso lang i don't know kung kakayanin natin na every other day, iniiyakan ni Kris si Yebo sa ABS at PDI. :D

  10. Join Date
    Oct 2002
    Posts
    10,819
    #10
    may cemented barangay roads naman sa target area ko, pero in case bibili ako ng pick up it will be 2nd hand. bihisan ko na lang ng konti, like raised suspension, bigger tyres, hela flood lights ...

    marijuana mabilis daw roi seriously, i plan to hire a hundred goats to keep the grass short. kahit may magnakaw, goats are cheap and multiply fast, unlike cattle. wala na ko time siguro to plant in between the trees pag maliit pa. but 1 thing i know that likes to grow under the shade is mushrooms. but that will come later.

    ok lang si kris, papa-annul after 5 years kita ka ng 50 million sa settlement gaya ni james hahaha!

    tagal nga ng roi lsb, but better than buying land for apartment (lahat ng kilala kong ofw puro apartment/commercial space, 10 years na hindi pa nakabawi tapos sakit pa ng ulo maningil ng rent). di ko din kaya yung bibili ng lupa tapos patayuan ng townhouse, dapat yun full time na ako.

  11. Join Date
    Oct 2002
    Posts
    10,819
    #11
    yung sa denr dapat sa planting pa lang may permit ka na. then after 6 months-1 year may hawak ka na paper from denr na lahat ng puno na intended for harvesting later is for tree farming, may pictures pa na kasama as proof na tinanim mo.

    harvesting is either you do the cutting or they do the cutting. mas mataas price if you do the cutting. the price i mentioned is if the buyer will be the one to cut.

    pang long term investment talaga sirs, 15 years or more sa mahogany. yung gmelina e paningit, para naman may pampagana pag nawawalan na ng drive. o pondo.

  12. Join Date
    Jun 2007
    Posts
    1,161
    #12
    take it to consideration...
    yung 7-15 yrs, maraming pwedeng mangyari.
    sa ngayon walang NPA pero hindi natin alam after 5-10 yrs.

    bakit hindi na lang coconut tree? alam ko 2-3 yrs lang ata, namumunga na yung puno.
    in demand ngayon sa US ang virgin coconut oil at milk.
    correct me if im wrong pero ang alam ko, 3x/year mamunga ang coconut tree.
    plus, pag di na pinakikinabangan, pwedeng gawing coco lumber tapos taniman ulit ng bagong puno.

  13. Join Date
    May 2006
    Posts
    8,357
    #13
    matakaw sa tubig ang gmelina pag kulang hindi din lalaki ng maayos. rubber tree at niyog ang karamihang itinatanim dito ngayon mabilis ang ROI at tuloy-tuloy.

  14. Join Date
    Oct 2013
    Posts
    1
    #14
    lifting is the funnest activity ive ever done in my life. i used to be podgy and hated my life, but for the second time ever everything is great because i lift all fulltime anyday im stressed because of it. and i do have crappy anxiety days where that happens.

    Punching Bag Stand .net - Boxing, MMA, workouts and more.

  15. Join Date
    Oct 2002
    Posts
    21,433
    #15
    Not all areas yata pwede taniman ng coconut tree.
    Last edited by boybi; April 25th, 2013 at 05:03 PM.
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  16. Join Date
    Sep 2013
    Posts
    92
    #16
    Quote Originally Posted by yebo View Post
    i've been thinking lately on where to invest long term (besides stocks market). as i do not have much business acumen like some guys here (nakakainggit naman kayo!) and also do not have the time to look after the business full time (OFW) i prefer something that i (used to) know and like to do. i have been looking for some farm land for tree farming, of either gmelina (paper tree) or mahogany. the gemelina will be for medium term income (5-7 years) while the mahogany for retirement (15+ years). as per the research i've done so far, gmelina can be sold for 1.5-2k per tree after 5 years, and the mahogany around 10k-15k per tree after 15 years (price varies on location, lower where there is illegal logging).

    i'm doing my computations on the over pessimistic side, lower end less 20%, so that will be 1.2k/tree for gmelina and 8k/tree for mahogany. sobrang pessimistic ba? at the spacing of 1.5 meters for gmelina and 2.5 meters for mahogany, and basing on a square planting pattern (less efficient) as against a hexagonal pattern (more efficient) to compensate for tree loss due to thinning/stunted growth/desease/typhoons (again very pessimistic at only 50+% survival rate), that's 4,400 trees/heactare for gmelina and 1600 trees/hectare for mahogany. (note: tree density increases by a factor of almost 2 using a hexagonal pattern). yield for gmelina after 5-7 years (again, pessimistic so 7 years) = 5.28M/hectare. for mahogany it's 12.8M/hectare after 15 years. i intend to plant 5 hectares to gmelina and 10 hectares to mahogany.

    price per hectare is 225-250k at the location i'm targetting (in central luzon, no illegal logging, no NPA). i will start from seeds (not seedlings, i do have the time to plant seeds) so that means minimal expense. i will also be using chicken manure for fertilizer, which i had been told is necessary if the trees are planted on low grade soil (but i will be buying land good enough for vegetables). my estimate is 300k/hectare innitial investment (land, seeds, labor) for both gmelina and mahogany plus additional 20k/year/hectare. for 7 years, total investment on the 5 hectare plot planted to gmelina will be 2.2M, yield estimate is 26M. for the 10 hectare planted to mahogany, 15 years total investment will be 6M, and yield estimate is 128M.

    would you consider this a good venture? is anyone here into tree farming? please try very hard to discourage me
    hello yebo!
    at last, nakakita din ako ng isang investor na pareho ang tumatakbo sa isip ko...i think lahat ng points mo and ung ibang discussions dito nainternalize ko kasi i have been researching for this type of investment..OFW din ako and looking for a long term investment plus tulad mo din, something i love to do...genetic buildup ko is close sa nature...
    at this stage, nagreresearch na ako about growing gmelina, mahogany at teak..and active na din akong nagtitingin ng farm lots sa lugar namin...and also nagtatanong tanong din ako if san pwede bumili ng seeds for gmelina at mahogany...nagtanong ako sa Manila Seeds kaso ung mahogany nila eh hindi ung honduras/genuine mahogany type kundi ung philippine mahogany...

    anyways, musta na pala ung setup mo ngayon?naumpisahan mo na ba ung investment mo na eto?share naman and malay natin in the future we can help each other through experience sharing keep in touch...salamat

  17. Join Date
    Jun 2012
    Posts
    1,488
    #17
    I have planted about 500 mahogany tree 3 years ago. Ang problema, hindi basta magputol. Kelangan ng permit from DENR. Anyway, ang sabi ng provincial office ng DENR (Region I). Hindi pwedeng magputol! WTF. Hintayin kong lumaki-laki pa at makapagputol ng ilan. Malaman kung may kaso nga.

  18. Join Date
    Sep 2013
    Posts
    92
    #18
    Quote Originally Posted by confused shoes View Post
    I have planted about 500 mahogany tree 3 years ago. Ang problema, hindi basta magputol. Kelangan ng permit from DENR. Anyway, ang sabi ng provincial office ng DENR (Region I). Hindi pwedeng magputol! WTF. Hintayin kong lumaki-laki pa at makapagputol ng ilan. Malaman kung may kaso nga.
    ano pong type nung mahogany ang itinanim nyo sir at san po kau nakabili ng seeds?salamat

  19. Join Date
    Jun 2012
    Posts
    1,488
    #19
    Quote Originally Posted by morningbliss View Post
    ano pong type nung mahogany ang itinanim nyo sir at san po kau nakabili ng seeds?salamat
    Meron pa palang iba-ibang type ng mahogany? Di ko alam anong variety yun basta binili ko dati sa municipal DA nursery at P5/seedling. Yung iba sa private nursery. Maraming nabibili. Try mo sa sulit, baka may mga nagbebenta.

  20. Join Date
    Sep 2013
    Posts
    92
    #20
    yes...un ang una mong i consider kasi ung market value depende sa type nung mahogany...ung world standard is ung tinatawag na honduras or genuine mahogany....un ang top class...ewan ko lang if anong mahogany ung nabili mo...

    gus2 ko sana seeds na lang kasi di naman ako nagmamadali...
    anong place ung nirerefer mo na DA at private nurseries?
    salamat

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gmelina or mahogany farming anyone?