Tree Banking for Our Children and Grandchildren

Tree Banking, an Example

It is simple for those who have tropical land.  For others who “have not” it can still be simple if you have your reliable contact who has tropical land and the knowledge and wherewithal to assist you.  Later, this methodology will be explained but initially the basics follow showing how tree banking can sustainably work for you and your family.

Although Mahogany prices in the Philippines are low and below the internationally recognized value it is actually a very good time to grow trees.  When in the growing phase the low price is irrelevant. The future supply lends itself to a top-end furniture crafting business model which levels the playing field on an international basis.  In other words conduct the growing and crafting in the Philippines and then conduct the selling on the international market which will be illustrated throughout this series of articles.

Figure 1 25-years-old, this six feet 

of circumference converts to 

two-plus feet in diameter.  Growing 7% 

per year by 35 years the diameter will

 be 3.8 feet (45 inches).  Planted in 

1994.  Thirty-five years will be in 

2029. How old are your unborn children

or grandchildren now?   Rhetorical yes, 

but thought-provoking nevertheless.  

Growing trees is for the next generation. 

Sustainable forestry is for all 

succeeding generations.

Figure 2 Mahogany sprouts, 

March 17, 201; two beds,

about 4,000, nearly 100%.

Figure 1 Mahogany seed bed, early 

March 2019, two beds, 4,000.

Value

Unfinished solid Mahogany lumber at Home Depot in the USA ranges from US$6.00 to $28.00 per board foot (BF).  Premier cabinet makers worldwide extol the qualities of crafting with Mahogany.  Well-crafted high-end furniture using Mahogany demands the equivalent of a factor of ten or more above the unfinished BF.  When factoring this amount the BF value of Mahogany, even at the low end, is US$60/BF, gross value of course.  The net might be US$30/BF.

The Doyle rule is a way of measuring the standing tree in order to determine the available BF.  The rule uses DBH which is the acronym for Diameter Breast High.  You are invited to research the Doyle rule more on your own.

DBH (inches)	3 logs (BF)	Gross Value:  Tree $60/BF	4 logs (BF)	Gross Value:  Tree $60/BF
36	1,310	$78,600
42	1,860	$111,600	2,100	$126,000

Linear value examined simply:

The future in the Philippines of having a high-end furniture crafting business may realize phenomenal results and additions to the local domestic product.  The sustainability line shows excellent factors when growing only 200 trees for the account holder.  More to follow.