Poplar farming is an increasingly attractive investment opportunity in European countries, as demand for wood products continues to grow. With the right resources and investment, poplar farming can be a profitable venture, with potential for long-term returns.
One the reasons for populicuture becoming an attractive investment is that it can provide a significant return on investment (ROI) over the long term. Poplar trees are fast-growing, so they can be harvested and sold as timber in a relatively short period of time, usually between 10 and 20 years depending on the country. This means that poplar growers can quickly establish a profitable crop, with the potential for a high yield.
Populiculture is a popular investment opportunity in many European countries, including Italy, France, Spain.
Poplar cultivation represents an important and dynamic sector of activity with 46,000 hectares of poplar plantations in Italy, 212,000 hectares in France and 81,000 hectares in Spain.
The average turnover in Europe ranges from 12.000€/ha and 30.000€/ha, depending on the quality of the varieties/clones used, their density, and age of harvesting.
Populiculture trends in Europe
According to a report by the European Commission, the poplar industry in Europe has grown by an average of 2% per year over the last decade.
In recent years the poplar sector has experienced a revival, especially in France, thanks to the implementation of the initiative Merci Le Peuplier (Thanks to poplar) of aid systems for poplar planting, that makes possible to secure investments in poplar plantations. The initiative has also been recently implemented in Spain.
The main goals of this French-born initiative are to encourage the replanting of poplar after harvest to ensure that the wood remains a renewable resource. Also, to perpetuate the resource of standing poplars, develop the use of wood with PEFC or FSC certification, from the plantation or forest owner to the consumer, empower the spirit of the sector and strengthen the ties between each link and make the image of the poplar evolve.
Good for people, good for the planet
While the value of wood as a material is the main factor in the financial profitability of poplar today, the carbon sequestration potential of poplar groves is certainly the societal argument that will boost the planting and cultivation of poplar in Europe in the years to come.
Indeed, the European Union’s (EU) climate and energy targets aim to reduce greenhouse gas emissions by 40% by 2030, compared to 1990 levels. Poplar cultivation, through the area planted and the geographical spread, can make an effective contribution to achieving these targets while promoting economic growth and job creation in rural areas.
In conclusion, poplar farming is a highly profitable venture in Europe due to the increasing demand for timber and the fast growth rate of poplar trees. Finance and investment professionals view poplar farming as a low-risk investment that can provide high returns in a short time. There are various sources of financing available for poplar farming, including government grants, private investors, and forestry investment companies.