Finca Leola

Finca Leola S.A. a plantation company which grows Wood::Teak and many native species of tropical hardwoods (a.o. Wood::Acacia mangium, Wood::Almendro and Wood::Mahogany), established in 2002 in Country::Costa Rica, states it:

'' “believes that the conservation of tropical hardwoods for future generations will be achieved through sustainable forestry practices that are both a profitable investment and beneficial to the communities and to the ecological biodiversity surrounding tropical tree farms. We also believe that reducing the pressure against deforestation of old-growth forest is best done by using an alternative renewable source, plantation-grown hardwoods, to manufacture the products traditionally taken from these forests. To this end, we are growing trees for processing and sale as lumber and wood products. After all the trees have been harvested, the land they have helped pay for will be turned over to perpetual forest, forever protected from clear-cutting.”''

Sales for Finca Leola are now handled by Ethical Forestry.

People
Finca Leola is run by Fred and Amy Morgan.

Con::Unrealistic projections?
These projections are being mentioned in Using Finca Leola as an example in describing on "How to restore and maintain an ecosystem while earning a permanent profit" - Written by Ed Ring for www.EcoWorld.com (with copyright notice 2010 - 2011)

''Projections provided by Finca Leola for their tree owners rely on conventional assumptions: a rate of timber growth of 26 cubic meters per hectare per year, a market price for teak of $350 per cubic meter, and a natural loss of 10%. Based on these assumptions, a $3,500 investment will return over 25 years a payback of $33,000, yielding a very healthy inflation-adjusted internal rate of return of 13.4%. In reality, the returns from an investment in tropical hardwoods may be far higher. Historically, the price of tropical hardwood has increased on average 6% per year over and above general inflation, due to the factors already mentioned, increasing demand and diminishing supply. If this trend holds over the next few decades, then a $3,500 investment in tropical hardwoods today will return over 25 years a payback of $116,500, yielding an astonishing internal rate of return of 21%.''

It seems this cannot be found on there own website which states under "Financial return":

''Ah, the topic we are all interested in! A good friend pointed out that financial returns suffer from the "sharp pencil" syndrome. It is very easy to create financial models that make it look like you will be richer than Bill Gates in a few years.''

''In truth, even though our projections based on growth we are getting show that we could have an internal rate of return (IRR) of around 20%, we will be happy as long as it is in the neighborhood of 10%. Any business that for 25 years steadily produces a net profit of 10% is doing very well.''

Contact
Finca Leola S.A.

2 Km norte del cementerio

Cabanga de Guatuso

Alajuela, Costa Rica