INVL Sustainable Timberland and Farmland Fund II

We work with farmers who undertake crop rotation and thus protect arable land from degradation. A part of our land is worked by organic farmers and farmers who employ no-till practices. We seek to sign long-term rental contracts with farmers, which let them expand their activities and create jobs in rural areas. Since 2023, we have also been afforesting less fertile land.

The value of a forest or land plot is the price that buyers are willing to pay. That is affected by many factors, and different buyers consider different criteria depending on their own objectives. Thus, the price offered for a forest or land plot can vary.

The INVL Sustainable Timberland and Farmland Fund II team carefully assesses both forest and agricultural land, giving priority to their sustainable management. If you are considering selling a forest or farmland and would like to get an offer from an experienced team whose goal is long-term sustainable asset management, contact us, using the form above to submit an enquiry.

Determining the value of a forest:

The valuation of a forest begins with analysis of its inventory, looking at trees’ species, timber quality, sanitary conditions, whether they are of harvestable age, and whether any environmental restrictions apply. The situation in the roundwood market also affects prices.

If your forest has trees of varying ages, firms that invest in felling processes and equipment and logging companies most likely will offer the highest price for the mature part of the forest, but may offer less for the part that is still growing and for young tree stands.

Determining the value of farmland:

In judging the value of agricultural land, its qualitative parameters are first assessed: its condition and fertility, accessibility, soil structure, drainage systems, and other criteria.

Process for determining a forest’s value:

To learn the preliminary value of a forest, the owner can request a forest inventory report for the holding in question from the State Forest Service, which collects and manages information on all Lithuanian forests. The final value of the forest can be determined by a professional forester.

A forest inventory reports contains:

• the identification code of the cadastral object;

• spatial cadastral data; geographic location, forest block number, and land plot area;

• forest land-use categories (e.g., stand, cutting area, etc.);

• data on dominant tree species, stand origin, productivity, stocking level, forest site, forest group and subgroup;

• descriptive data for trees: forest layer, species, and species coefficient within the layer;

• average age (in years) and average height;

• data on forest management actions within the cadastral object.

Forestry specialists check precise forest inventory figures during an on-site review of the forest parcel.

Note that forest owners do not necessarily have to submit a request to the State Forest Service themselves. We, as registered users of the forest cadastre geographic information system, can obtain the preliminary inventory data and assess the forest you are selling to offer a fair price.

Process for determining the value of farmland:

To learn the preliminary value of farmland, the owner can request information on the plot in question from the Centre of Registers, which maintains a database of cadastral data for all arable land in Lithuania. The final value of the land can be determined by an agricultural professional.

Cadastral data for a land plot includes:

• the identification code of the cadastral object;

• the geographic location;

• utilised agricultural area, area of water bodies, and area of drained land;

• information on rights and other legal facts pertaining to the cadastral object.

Note that landowners do not necessarily have to submit a request to the Centre of Registers themselves. We can obtain the preliminary data to assess the arable land you are selling and offer a fair price from the databases we use.

Land management specialists verify cadastral data during a physical inspection of the plot.

If you are considering selling a forest or agricultural land or have already decided to do so, we recommend that you identify the market players who can provide you with information and offer fair transaction terms.

• Choose a buyer. Make sure they can not just offer the highest price but also ensure proper care of the forest or land. Consider who is buying, how much information they provide about themselves, and what their business objectives are.

• Fix the terms of the transaction. Typically, a preliminary sale-purchase agreement is signed that specifies the price and settlement terms for the forest or farmland as well as declarations and guarantees of the seller and the buyer.

• Apply to the National Land Service for a permit to sell the forest or farmland.

• Once a permit is received, sign the main sale-purchase agreement in the presence of a notary public.

The INVL Sustainable Timberland and Farmland Fund II contributes to implementing the United Nations Sustainable Development Goals (SDGs).

Key principles of sustainability we abide by in investments:

• Protect the environment, be socially responsible and practice transparent governance.

• Follow best market practices and the guidelines of international organisations for long-term management of forests and land.

• Maintain a healthy and thriving local ecosystem which enables long-term value creation.

Forests owned by the INVL Sustainable Timberland and Farmland Fund II are managed sustainably. The companies that own the fund’s forest portfolio in Lithuania are committed to the principles and criteria of the Forest Stewardship Council® (FSC®) in their work. Testament to this is the FSC® Group Forest Management Certification (certificate NC-FM/COC-067275, license code FSC-C177006) held by UAB Šalnupis, which administers the management of the fund’s forests. The fund’s full Sustainable Forest Management Policy is available here.

A full list of the group members administered by Šalnupis is provided here.

The FSC® is an international nongovernmental organization that promotes environmentally appropriate, socially beneficial, and economically viable management of the world’s forests. To learn more, visit their website.

The fund’s sustainably managed forests:

• contribute to climate change mitigation and other ESG objectives;

• contribute to the development of the local economy;

• provide shelter and habitats for flora and fauna to thrive;

• allow local residents and tourists to enjoy nature trails for leisure and wellbeing.

Our sustainable management of forests:

• meets standards for sustainably managed forests as well as international and national agreements and legislation;

• ensures the social and economic wellbeing of employees;

• is carried out in collaboration with local communities helping to strengthen them;

• aims to allow forests to thrive for centuries and provide a range of benefits for people and the environment:

  • we have set a maximum annual rate of harvesting that does not exceed the sustainable level of forest use;

  • we ensure that mature and near-mature forest stands make up at least 20% of the total forest area we manage;

  • we protect and look after landscapes along with natural and cultural heritage;

  • we are committed to leaving at least 10% of forest we manage uncut except where necessary to maintain biodiversity or deal with the effects of a natural disaster;

  • we protect trees with breeding cavities, nests, loose bark and other microhabitats, as well as those distinctive for their size, age or other features (e.g., champion trees, veteran trees and multi-trunk trees);

  • we do not carry out felling near water bodies.

Climate change can be mitigated faster if forests are managed sustainably. When forests are left uncut and grow to natural maturity, timber resources are left unused and little can be done to replace fossil materials and other pollutants like oil, cement, metals, etc. (Holmen, 2019).

The fund’s land is worked by farmers who provide the community with good-quality, safe, wholesome agricultural and food products:

• we rent land to farmers and agriculture companies whose main activity is food production;

• we promote the use of some of the land we own for ecological farming;

• we avoid leaving productive land uncared for;

• we invest in meadows and pastures that are suitable for livestock.

Prospering farms provide people in rural areas with the income to live with dignity and preserve a way of life that is valued and loved:

• to maintain a balance between small and large businesses, we rent land to both to agricultural companies and to small farmers, usually based on who worked the land before the transaction;

• we rent land to farmers who are capable and have a good reputation;

• we seek to work with farmers who use modern and environmentally friendly technologies;

• we work with family farms and make small acquisitions to support the growth and competitiveness of family farms;

• we invest in land suitable for mixed farming and encourage collaboration among the family farms in a region that combine ecological and recreational activities.

Responsible land management helps to keep the environment clean and safe, preserve the landscape and biodiversity, and maintain soil quality:

• we work with farmers who conduct planned crop rotation;

• we work with farmers who practice precision fertilisation;

• we work with farmers who participate in agri-environment schemes;

• we invest in mixed-use land and protect mosaic landscape elements.