|1||Fast growing, renewable hardwood in 8-12 years|
|2||The ‘aluminum of lumber’, Empress is light weight yet strong|
|3||Largest grower of Paulownia in North and Latin America|
|4||2600 acres already planted with 150 farmers in 5 countries|
|5||Expert team with over 50 years experience|
|6||Diversified farms to reduce risk|
|7||One acre of trees can absorb as much CO2 annually as an American family of four produces|
Are you looking to amplify the positive impact your investments are having on the world? Worried about the turmoil in the market? Unsure how to respond?
World Tree offers a unique, long-term opportunity for eco-minded investors looking to diversify their portfolios and amplify the positive impact of their investments.
World Tree is planting 3,500 acres of the world’s fastest-growing hardwood, Paulownia (Empress). These trees will absorb 1.3 million tons of carbon (or more) and provide a sustainable source of lumber in 10 years. Any profits from the sale of the lumber will be shared with farmers and investors.
As the planet reels from the damaging consequences of climate change, the disastrous economic fallout following the pandemic and the social unrest ignited by systemic racial inequalities, it seems there is no safe harbor to turn to today. The world is upside down and the sense of powerlessness can be overwhelming.
And then there are trees ...
Trees are indifferent to bull markets and bear markets. They grew through two World Wars, the Great Depression, the rise and fall of the Soviet Union and 9/11. Trees remained blissfully unaware of the Great Recession, the pandemic and the ensuing economic shutdown. Needing little more than the sun and the rain, trees simply grow through everything.
Of course, trees, while growing, also continue to draw down carbon.
Sadly, trees are also under threat. Old-growth forests are being cleared at the rate of a football field every second, according to 2018 report in the Guardian. The World Bank estimates about 3.9 million square miles (10 million square km) of forest have been lost since the beginning of the 20th century. In the past 25 years, forests shrank by 502,000 square miles (1.3 million square km) — an area bigger than South Africa.
This is where your partnership with World Tree and its farmers can make a difference.
World Tree is planting up to 3,500 acres of the world’s fastest-growing hardwood, Paulownia (Empress) this year; a tree that reaches maturity in 8-12 years and, when harvested, regrows from the stump up to 7 times.
Paulownia utilizes a very powerful form of photosynthesis (called C3/C4) to fuel its fast growth rate. This allows it to absorb tremendous amounts of CO2, the main cause of climate change.
One acre of Paulownia (Empress) trees can absorb between 38 and 90 metric tons of carbon dioxide per year. That is equivalent to the CO2 the average American family of 4 produces in one year.
With 3,500 acres planted, World Tree aims to draw down of 1.3 million tons of carbon from the earth’s atmosphere.
To achieve this impact, World Tree has recruited over 100 farmers from across the United States and Latin America. The farmers grow and care for the trees under World Tree’s supervision. The trees will be harvested in 8-12 years generating potential new revenue streams for farmers and profits are shared with investors.
As the demand for timber continues to outstrip supply, and old-growth forests disappear, fast-growing Paulownia is uniquely placed to see its share of the timber market grow. Unlike pine, which takes 25-30 years to reach maturity, Paulownia can be harvested in less than half that time. It also regenerates after harvest without replanting. With two crop rotations to pine's one, Paulownia is a viable and renewable source of timber.
There are 23 Species of Paulownia. World Tree uses only non-invasive varieties.
Proven to have the highest strength to weight ratio of any wood in the world, Paulownia is known as the ‘aluminum of timber’. It has a number of applications ranging from furniture and musical instruments to veneer and packaging. Due to its high insulating qualities, architects are increasingly using Paulownia in green buildings as a finishing wood.
The market price for Paulownia hardwood currently ranges between $3 and $14 a board foot depending on the quality of the wood. One acre of trees on a well-managed farm can produce around 30,000 board feet of lumber.
While growing, the tree has additional benefits for the farmers. The trees huge protein and nitrogen rich leaves are excellent fodder for livestock and fertilizer for the soil. The trees also allow for intercropping with other plants such as coffee, cacao and plantains and provide much-needed shade to increase yields in these companion plants. This enables farmers to increase revenue streams from the same plot of land and enhance their economic futures.
For years, investing in timber has been primarily the domain of institutional investors (e.g. pension funds) and the very wealthy. Only sophisticated investors could participate and only then with large sums of money. World Tree has disrupted that model by gaining approval from the Securities and Exchange Commission (SEC) in 2019 to pool individual investors’ funds in a specific offering each year.
Now, thanks to platforms like WeFunder, individuals can invest directly in timber through World Tree’s Eco Tree Program.
Each year, World Tree offers the public the opportunity to directly invest in timber through the revolutionary Eco Tree Program.
The money raised each year funds that year’s planting of trees, or ‘vintage’. The saplings are distributed from World Tree partner nurseries in Canada, USA, Guatemala, Mexico and Costa Rica to the farmers enrolled in the program. For every $3,000 investment, one acre of Paulownia (Empress) trees is planted.
The farmers provide the land and labor to grow the trees and World Tree provides the trees and its management expertise. If those trees are successfully harvested, investors can receive distributions after 8-12 years: 50% to the farmers and 25% each to World Tree and the eco-centric investor.
World Tree currently has 2,600 acres under management with 150 farmers and is the largest-grower of Paulownia trees in North and Latin America.
Crop failure is a significant risk factor. For instance, a farm may fail due to severe weather or because a farmer is unable to care for the trees. For this reason, we plant the trees across dozens of farms many thousands of miles apart in 5 different countries. If anything should happen to one stand of trees, this should not have a significant impact on the overall return.
Investors receive a pro-rata share of profits generated across all regions.
Trees are audited annually with our customized forest survey field software and GIS systems . This allows us to track growth and development down to the individual tree.
Returns will depend on the volume and quality of lumber produced. In practice, we can expect to see variation in our farms, producing a mix of low, medium and high grade lumber. This graph shows the potential return on a $3,000 investment based on tree survival assuming that half the lumber harvested is medium grade, and the rest is a mix of low and high grade.
We are targeting 75% survival, which could produce investor returns of $35,000 or more. These numbers include the anticipated costs of managing the plantations and harvesting the lumber. However they are only projections and actual results may vary.
Any profits will be distributed when the trees mature and are harvested in 8-12 years.
And .. finally ... to get a real sense of how this impacts the world, this video tells the World Tree story from the point of view of the farmers.
World Tree is not conducting a Regulation Crowdfunding offering. Hosted by Wefunder Inc.
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