2. Buying Forests As deforestation and increased logging rates continue to threaten

forest ecosystems, i developed a hypothesis that buying forests under impending threats would help prevent further damage and enable perpetual preservation.

To date, i have contributed to the acquisition and management of over 250 acres of forests in countries where both legal and illegal clear-cutting and logging rates are alarmingly high.

Below is what i learned during this process.

Initial Set-up

It is common for land purchases to be made either by a family office or a group of individuals who pool their resources together. In both cases, the land is purchased through a legal corporation to ensure proper ownership and accountability.

When it comes to owning forests, there are upfront costs and ongoing expenses to consider.

Upfront costs include establishing a local corporation to hold the land and hiring an accountant/s. Additionally, in "poorer countries" where logging rates are high, forest prices can range from from $1,000 to$10,000 per hectare. However, there are additional expenses such as due diligence, legal and accounting fees, translation services, and taxes.

As for ongoing costs, it's often unclear how much to budget for maintenance at the outset. However, learning how the local social ecosystem works and forming relationships can help reduce ongoing costs beyond the initial expenses. Typically, the budget includes cleaning, security measures (e.g., cameras), hiring foresters, data gathering and analysis, travel, and having on-site manager/s.

When it comes to budgeting the costs will vary depending on the level of defense and preservation mechanisms we want to have in place. Based on my experience, acquiring and setting up a resilient system for around 98 acres of forested land could sometimes require a minimum upfront capital of $150,000, not including the personal time invested. However, depending on the region, it can even be lower or significantly more expensive.

While I know this may not be very specific, one of the key takeaways is that purchasing land in countries where deforestation happens at alarming rates entails a significant number of initial tedious processes, and each one incurs an initial significant costs.

Being on the ground during this initial process of establishing the legal structure, conducting due diligence, negotiating, setting up support systems, and creating a management plan is crucial for success. While locals can be hired to assist with this process, it is not a panacea.

Scalability

After completing the first land purchase and management plan, i sat down and reflected on my next goals.

I was quickly faced with a simple, yet powerful question —Is the goal to buy all forests that are about to be cut down?

Forests are not a "money-making machine", and buying them solely as an investment opportunity to later sell for a higher price is not the intention. Instead, they are mostly a "money-sucking machine". Therefore, the scalability of the plan came into question and it immediately failed to meet this requirement.

Money is not the only issue when it comes to scalability. Regulations are another challenge. Each country has its own legal system & language, and each legal system is like navigating on a small boat in the middle of the ocean while there is a big storm.

Alongside these issues, buying and managing even just a small amount of forested land is extremely time-consuming. It is a full-time job for multiple people. Therefore, buying larger amounts of land all over the world is a challenge that can be difficult to navigate at scale.

Can Ownership Really Protect Forests From Deforestation?

Despite purchasing forested land, there is no guarantee that logging will not occur when the owner is not present, particularly in politically unstable countries where laws can be easily broken.

For example, when i was trying to protect some forests in an area where illegal logging is common, i set up a meeting with a person who was leading some of these activities. I learned that there were two types of "illegal logging". One is done without permission in areas that are not visible from roads and far away from villager's ears. In this case, sometimes government officials are informed and benefit from it. But the other type of "illegal" logging involves being hired by the local forest owners to cut their forest "off the books". This is also common because officially the laws only allow a certain percentage to be cut each year, and local owners want to cut more to make more money. After speaking with this person, who was clearly meeting a high demand for very cheap wood and serving forest owners wanting to cut more of their forest, I scheduled a meeting with a forester working for the forestry governmental agency, hoping to also work with them to protect forests. To my surprise, the same person I had met the day before entered the room.

Furthermore, even if illegal logging does not take place, the government can take back ownership of the land at any point. For instance, in Mau Forest, the government historically took land for commercial logging and tea plantations, or was bribed by loggers. In Brazil, forest caretakers were evicted to clear forests for soybean plantations and cattle grazing.

In corrupt political systems, it is challenging to assume that owning the forest will guarantee its protection.

Another personal example is when I tried to work with a local government agency to set up management plans and protect forests in the area. While discussing my intentions with a director, another official came out of the government building with a full bag that we put trash in. The official excitedly asked the director to come see what was in the bag, and their faces lit up with big smiles. The director shared my intentions to purchase forested land with the official and suggested that maybe the official could convince me to work with them. To incentivize me, they showed me what was in the bag - cash, a promise of what working together can look like.

Ownership Titles

When purchasing forests in regions where the government has historically been unstable, obtaining the titles to legally establish land ownership is a major challenge.

The process of tracking down the titles and verifying their legitimacy can take months or even years. And even after obtaining the titles, in some cases they may turn out to be fake.

Local Community

Preserving forested areas requires a community of mutually trusting individuals who reside in the area. However, when i talked to locals, i often heard skepticism and fear. They shared multiple stories of people coming from all over the world and claiming they want to protect forests. However, time proved them otherwise, showing me big logged & clear-cut areas.

There are also controversial examples such as 2010 in Romania where Harvard University became one of the largest private forest owner in country via corrupt ways and sketchy holding companies. The organization further partnered with Ikea, sold some of the land to them, and soon after valuable forest ecosystems were destroyed. This type of actions lead local communities to distrust people claiming to preserve the surrounding forests. source (opens in a new tab)

Without a strong local support system, it is close to impossible to protect forests, especially when the forest purchasers do not reside in the surrounding area.

Moral Questions

1. Forest purchasers are often people who were not born in the country where the land is located. How does this impact the local community?

I personally do not want to restrict borders, on the contrary, i encourage open borders and free trade. I also do not value an "Us vs Them" attitude. With this being said, i do acknowledge the risk of local cultures (such as fashion, pottery, music, and language) fading away as another culture becomes dominant, especially when it owns the majority of the land.

2. When forested land is purchased in poorer countries, the buyers often choose not to live there. How does this impact the forest? Is it carefully protected or more vulnerable to illegal logging and degradation?

In some cases, the absence of owners often leads to illegal logging. However, these purchases have benefits such as locals being hired to protect the forested area.

3. How involved is the local community in deciding what happens to the land around them?

Sometimes, i encountered buyers who hold a poor opinion of the community in which they buy land. This can results in a lack of collaboration, trust, and shared ownership, which ultimately can decrease the chances of having flourishing forests.

4. Are there clear systems in place to guarantee that forest purchases are made only for preservation efforts and not as part of an investment portfolio?

5. What does "ownership" even mean in the case of such vital ecosystems?

Acquiring forests has left me with a sense of unease. It feels wrong to say "this forest is mine" when none of the trees, animals, or other elements were created by me and do not truly belong to me.

Claiming ownership often leads to a feeling of entitlement to modify the land or cut down trees, regardless of laws or regulations.

Owners may even restrict access to locals and visitors, preventing them from enjoying the forest's benefits and food sources.

Additionally, holding onto land as an investment opportunity or simply holding onto it from generation to generation, while benefitting from the land's value increase, without any contribution to it, is a factor that can result in an unjust society, based in a feudal system. This concept, often referred to as "georgism", is nicely summarized in this blog series: Progress and Poverty (opens in a new tab).

These questions are meant to create thoughtful debates and encourage thinking thoughtfully and thoroughly through the concept of Forest Ownership.

How Much Do Locals Value Preserving Forests?

In some of my personal interactions with communities living in forested areas, I have found that many of them do not see the importance of preserving forests. They view forests primarily as resources for logging, hunting, and gathering food, and may even allow grazing in less wild areas. However, when i proposed the idea of preserving the forest ecosystem for its many benefits, such as maintaining air quality, protecting animal and plant species, improving overall health, preventing soil erosion, and ensuring clean water, they were unfamiliar with the concept's value. Often, locals participate in logging activities without being aware of the long-term consequences.

Are Loggers Bad People?

I used to get angry whenever i heard about people cutting down forests. It just seemed wrong to me to cut thousand-year old trees, home to millions of animal and plant species. But then I decided to do something practical — i went and talked to the loggers.

I immediately realized that they were just normal people, like me. They had funny stories, were kind, and had families to take care of. Logging was simply one of the few job opportunities available in the area, and it often paid better than other options. So they took it.

As we chatted, I explained to them why preserving forests was so important. The clean air, the healthy soil, the beautiful wildlife – all of it depended on these ancient trees. But then they hit me with a reality check: "If you have a job for me that pays at least the same, I'll take it now."

And that's when i realized that these loggers weren't cutting forests maliciously – they were just doing what they had to do to survive, they were meeting a demand. And looking at their jobs, i found a little bit of appreciation as it takes a lot of hard work to chop down those big trees.

I then became upset with the decision-makers of the logging companies. But my anger didn't stick around for long as i came to the realization that they too had a purpose to serve, a demand that us consumers create. They are the ones doing the dirty work so that we can build cozy homes, relax surrounded by stylish furniture, read books, jot down our thoughts in journals, stay warm in the cold months, and even create stunning art pieces that inspire us.