When I first came to Panama in 1995, I was involved in a number of reforestation programs in the central provinces of Panama; most were run by the Panamanian government and focused on reforesting denuded, barren fields that had once been dense rainforest. We planted Caribbean Pines and some Teak, but few native species of trees. While working in these reforestation projects, I realized very clearly that the process of deforestation in Panama, as with most tropical countries, is a human induced ecological problem. The cycle went like this: A population of farmers from an already exhausted environment moved into a jungle area, cut down large trees and then burned the forest to make agricultural fields. After burning all the vegetation, the land was used in a long fallow agricultural system: the land was used for two or three years and then was left to return to high forest for 10 to 12 years. But over time as the population grew and more food was needed the fallow, or resting period, was shorten until farmers were using their land every year or every two years. At some point the land became useless for agriculture; at this point, most of the land was turned into cattle pasture.

Futuro Forestal is trying to stop and reverse this process. What Futuro Forestal is emphasizing in their tree plantations is diversification on each plot in order to protect their investment and encourage biodiversity - a good policy. Futuro Forestal is also experimenting with about 25 other native and exotic species. Basically, Futuro Forestal buys the seeds from government centers (IDIAP is the government agency) and then starts the trees off at their nursery for the first 4 months or so. Sites are prepared, including digging a 1 m planting hole, which is filled with their special organic soil mix. Once the rainfall pattern is stable(May, June), the seedling is then transplanted in this medium, and it literally takes off! Visiting the various plots and seeing the growth heights of the species and then being told their age, you can’t help but be astonished.
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Futuro Forestal: Investing In Reforestation Futuro Forestal is a German/Panamanian company that has been managing reforestation programs in Panama since 1994. The company works closely with the Smithsonian Institute in Panama as well as the Yale School of Forestry and the University of Panama; it is FSC (Forest Stewardship Council) certified. The project is also being monitored by the Panamanian Environmental Authority ANAM. The project is dedicated to creating an attractive environment for the investor and at the same time helping to restore the biodiversity of Panama. The reforestation project is located in Chiriqui Province in and around the town of Las Lajas, which is located on the Pacific Coast of Panama, about a 5-hour drive from Panama City and an hour-and-a-half drive from Boquete.

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Depending on species, after the 20-30 year growing period and silvicultural management, Futuro Forestal expects to have about 400 crop trees to harvest, with heights of around 25-35 m. Most trees will reach the incredible heights of 20m within their first 4-8 years (compare that to coastal BC where best site growth is about 2-3m!). After that, the key is to transfer the growth to the girth, to put on diameter growth. Thus, further thinning and fertilizer applications. Unlike in the slow-growing conditions in North America, in Las Lajas, silvicultural investment must be intensive in order to keep up with the fast growing trees. By the way, all fertilizer applications consist of 100% recycled organic by-products, such as chicken manure and sugar cane leaves.

How To Invest And Why

Most investors in the project buy a 1-hectare parcel (10,000 sqm) or more – most investors invest 48,000 to 200,000 dollars in the project, most see a yearly return of 8% to 12% or more on their investment. After your initial investment you receive title to your land. Your land is then managed by Futuro Forestal: taking care of the trees intensively, fertilizing and executing the first thinning after approximately ten years. Thinnings will occur after years 15, 18 and 22 with the main harvest in year 25.

Basically what you are doing when you invest in Futuro Forestal is investing your money in a valuable natural resource – tropical woods – that will grow in value as the demand for tropical woods grows, as it is, and as demand grows prices will rise. At the end of the 25-year cycle you will still own real estate in Panama as the land that is used to grow trees is in your name.

Security And Best Quality

There are no active volcanoes in Panama. There are no hurricanes on the Pacific side of Panama. There is no history of strong earthquakes in Panama. 

Unique System of Insurance pool. More than 3% of reforested land will be held back for investors in case of total loss.
Key person-insurance with Generali (1.5 million US coverage).
Auditing through Deloitte.
FSC Certification through SmartWood (“well managed”).
Rating as No.1 Forest Investment in Latin America (SIRIREC 2004).
Risk minimization through ecological portfolio model (7 mainly native species of fine timber).
Co operations with renowned Universities such as Yale School of Forestry and Environmental Studies.
Tree guarantee: Futuro Forestal commits to replant trees which have died due to disturbed growth.
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To Contact Futuro Forestal Click Here

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Types Of Trees Grown At Futuro Forestal

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Teak - not native, high demand, fast growth Use: Furniture, Veneer, boat and yacht building	Mahogany - native, high demand Use: Furniture, Veneer, boat and yacht building
Amarillo - native, yellow wood, little supply Use: Furniture	Zapatero - native, dark brown wood, little supply Use: Arts and Crafts
Rosewood - native, very hard dark wood, high demand Use: Arts and crafts, music instruments, furniture	Cedro Espino - native, similar to mahogany Use: Furniture, Veneer, substitute for mahogany