The USVI has established low-tax and no-tax business zones to encourage investment in the islands. One such zone is a rosewood plantation, which benefits from a climate well-suited for rosewood growth, like that of the Amazon but with less intense humidity. Little water is required for irrigation, and the warmer climate allows for a 20% faster growth rate for rosewood trees than in Florida, for example.
Proprietary crop circle formations curl trees into a looping spiral that deflects wind force that also creates and holds humidity for optimal tree growth. Because trees are grown on U.S. protectorate soil, there is no ban on importing the wood to United States mainland, providing investors with an opportunity to cultivate rosewood trees offshore and earn a profit from $46M revenue in year 40.
Rosewood tree plantations are structured as social impact investment projects funded by investor partners and the company. Investment capital is secured by property ownership, which also provides an exit strategy. A portion of the capital is used to procure seed, propagation, and transplanting equipment, and provide periodic maintenance.
Rosewood trees are grown from seed sourced from mother rosewood trees that grow in the Amazon rainforest. Approximately, 10,000 tree seeds are needed to grow 5,200 hundred rosewood tree seedlings assuming a 50% germination rate.
Rosewood seedlings are grown in a tree nursery built on site featuring proprietary pyramid pots, which encourage vertical stem growth and a strong, ready for transplant root stem. Pyramid pots also prevent blow down from wind blow, a common problem with nursery trees.
It takes about 20 days to germinate the seeds to germinate and emerge as seedlings, which continue to grow into 3 year, 10-foot-tall tree saplings with the aid of proprietary fertilizing and pruning techniques.
Continuing to grow saplings for another 3 years to a height of 20 feet would shorten ROI from 40 to 30 years.
As one of the most expensive and sought-after exotic hardwoods in the world, plantation asset value would increase exponentially over time. For example, using a standing timber wood value of $8,896 per tree multiplied by 5,200 trees would create a total value of $46,000,000 in year 40.
The plantation covers approximately 26 acres of a 56-acre ocean side property, which rises gently from the ocean to the first slopes an island mountain range. A grassed open area mid-point on the property is fertile and a perfect location for the plantation.
Brazil’s amazon rainforest, which covers 2 billion acres, is the indigenous home of the Rosewood tree. Specifically, the trees grow in the states of Amazonas, Pará, Rondônia, and Acre. The Amazonas state, located in the northwest region of Brazil, has the largest area of Amazon rainforest in the world containing the last known pure stands of old-growth rosewood trees.
There are different species of Rosewood, each with unique characteristics that require compatible habitat requirements that only exist in specialized environments. The most highly sought-after species of rosewood for its valuable timber is Dalbergia nigra, also known as Brazilian rosewood. This species is native to the Atlantic Forest biome, which is located along the eastern coast of Brazil and extends into parts of Paraguay and Argentina , which makes Dalbergia nigra the ideal species of rosewood to grow on the Atlantic side of the United States Virgin Islands.
Due to illegal logging and unsustainable harvesting practices, rosewood populations in Brazil have declined significantly over the past century. The exact number of virgin rosewood trees remaining in the Amazon rainforest is difficult to determine, as much of the logging is done illegally and without proper documentation. However, earth scientists and international timber cruisers believe there are few remaining old-growth rosewood trees left in the Amazon basin - less than 4,500 estimated in the summer of 2022.
Due to the unique characteristics of rosewood, the rose colored wood of the trees is used for a many varied applications, including:
Transplanting 200 trees per acre creates a plantation with 5,200 rosewood trees. Tree seeds will be sourced from our forestry contacts in Brazil and propagated on site for 2 years before transplant on the site. Each tree will be transplanted in a pre-prepared tree specific nutrient filled cavity to ensure that the transplanted trees “take” to the surround soil. As young tree seedlings grow in the plantation, scheduled pruning will create clear-branched, clear-wood tree saplings, which at harvest will be worth a small fortune as knot-free, grade A sawlogs. Use the tree value calculator below to calculate the value of a rosewood tree.
We use patented methods to accelerate the growth of trees. We manipulate standard plug-and-plant forestry tree seedlings to produce tall tree seedlings that can reach a height of 8 feet in just 2 years before transplant. Or tall tree plantation seedlings are almost entirely branch free the entire length of their trunk looking more like palm trees than the branchy temperate trees found growing wild in the forest. Branch free tree seedlings grow into clear-grained sawlogs, which produce the most valuable wood veneer. In the USVI, we will prune on-site to achieve similar results.
Tall tree seedlings grow an elongated root stem rather than a root ball, which are expensive to ship, difficult to transplant and require wind supports. Elongated root stems are cheap to ship and simple to transplant using a post-hole auger mounted on a tractor. Insertion of the root stem into a similarly shaped ground hole eliminates the need for after transplant support. Almost half of all plug tree seedlings used by the reforestation industry die the first year after transplant due to insufficient root development. Tall tree seedlings however, readily take to the surrounding soil soon after transplant.
Once the site is cleared, tilled, and graded, a digital mapping system is created, which lays out one or more crop circle designs for the property. A perfect spiral grows perfect trees. The digital map is uploaded into our helicopter drone that will mark out each spot a tree is to be transplanted. Our team uses a tractor-mounted post hole auger to drill long, deep, cylindrical holes in the ground where each tree is to be transplanted. The depth of the hole is determined by the length of each tree stem. Inserting a root stem into each hole in the tree plantation transplants the trees. The hole is backfilled using the excavated soil, tamped down by foot and watered. A circular ground cover is placed around the trunk of each tree and pinned to the ground to prevent removal from wind blow. The ground cover prevents competition from the growth of surrounding plants. Our drill and fill transplant method almost guarantees a perfect 100% survival rate due to their developed drill hole shaped root systems, which take to the surrounding soil soon after transplant.
We use patented methods to accelerate the growth of rosewood trees. We manipulate newly germinated seeds or standard plug-and-plant forestry tree seedlings to create tall tree saplings that can reach a height of 10 feet in just 3 years before transplant. Tall tree saplings are manipulated to produce almost entirely branch free trunks to look more like palm trees than the branchy trees we find growing wild in the forest. Branch free tree saplings grow into clear-grained sawlogs, which produce the most valuable veneer quality wood.
Proprietary pyramid pots grow an elongated root stem rather than a root ball, which require wind supports after transplant. The pyramid shaped root of the tree sapling anchors the tree to the soil, eliminating the need for after transplant support.
Once the site is cleared, tilled, and graded, a digital mapping system is created, which lays out spiral planting designs for the property. A perfect spiral grows perfectly straight trees. The digital planting map is uploaded to a helicopter drone that flies over the property, marking out each spot where a rosewood transplant is to be planted.
Our team drills long, deep cylindrical holes in the ground at each mark using a tractor-mounted post hole auger. The length of the rosewood root stem governs the depth of the transplant hole. Inserting each tree stem into each hole transplants the 10-foot-tall rosewood tree saplings throughout the site. The hole is then backfilled using the excavated soil, tamped down by foot and watered.
A circular ground cover is placed around the stem of each rosewood sapling and pinned to the ground to prevent removal from wind blow. The ground cover also prevents competition of growth by surrounding plants.
Trees are considered a hard asset, historically outperforming inflation, providing a stable long-term investment alternative to the cyclical nature of retail investments such as real estate and the stock market. Growing rosewood trees has never made more sense than it does today; rising inflation, a looming stock market correction and the uncontrolled printing of paper money, are all reasons to grow rosewood trees.
Growing Rosewood trees outside the continental United Statas in a tax-advantaged jurisdiction like the USVI makes even more sense given current political and currency uncertainly on the mainland.
The U.S. Virgin Islands (USVI) offers several tax advantages for businesses, including endeavors focused on environmental conservation and sustainability, creating an opportunity to grow your money offshore growing rosewood trees. Here are some of the potential tax benefits of creating rosewood tree plantation enterprise in the USVI:
Tax incentives: The USVI offers a range of tax incentives to attract new businesses, including those focused on environmental sustainability. These incentives may include tax credits, exemptions, and deductions for eligible businesses.
Economic development programs: The USVI has a number of economic development programs designed to support businesses, including those focused on environmental conservation and sustainability. A rosewood tree plantation meets the economic development criteria set out by the USVI government and therefore qualifies for possible financial assistance, technical support and other helpful resources.
Green energy initiatives: The USVI has a number of green energy initiatives aimed at promoting renewable energy sources and tree planting activities that reduce the territory's carbon footprint. These initiatives may provide funding, tax credits, or other incentives for businesses that adopt sustainable energy and zero carbon practices.
Environmental regulations: The USVI has strict environmental regulations in place to protect the islands natural resources, including its air and water quality. It is clear that a USVI plantation project benefits the regional ecosystem and the global environment as a whole, which by default creates significant tax advantages to grow rosewood on the island.
The USVI is committed to promoting environmental sustainability and offers a range of tax advantages and other benefits to businesses that share this commitment. The creation of environmental business in the USVI, will be able to take advantage of these benefits and help contribute to a more sustainable future for the territory and maximize returns for the investor.
Partner with us to grow this tree in the States. We are currently pooling investor funds to build Rosewood plantations in the U.S.V.I.
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