Government — The stability of the government is critical. This is one of the main reasons for the growth of smaller plantations in places like Costa Rica. There are very large plantations and forestry operations in places you would not like to be, but because of their size and influence (and the ability to affect government policy), they can succeed. Small operations would probably be at risk in areas like these. We chose Costa Rica because of the stability of its government. More North Americans live in Costa Rica than any other Latin American country. One thing that adds tremendously to Costa Rica’s stability is its lack of an army. Back in 1948, the country abolished their military in favor of spending on universal health care. The government of Costa Rica is very encouraging to businesses starting reforestation plantations and offers various incentives. For example, if you invest in reforestation, you can apply for residency in Costa Rica.

Squatters — Losing your land to squatters is a concern in the tropics if you are not in the country to watch it. In Costa Rica, you do have a certain amount of protection in case squatters come in, but it is better that you prevent it from ever happening. This was one reason for our decision to come live in Costa Rica near the plantations.

Natural catastrophe — Fires, earthquakes, volcanoes, hurricanes, and other acts of nature can destroy a plantation.  In the tropics, the climate  is very stable. It does not have the wild fluctuations of the North. The temperature stays pretty much the same for the entire year, and the periods of daylight and nighttime are consistent. In Costa Rica, there are two seasons, the rainy season (8 months) and the dry season (4 months). During the rainy season, it does not rain every day, and it does rain occasionally during the dry season (usually about an inch per month). Thankfully, when it comes to storms, the tropics do not have as severe weather as farther from the equator. (Planting on the coast might not be the smartest thing, however.) Volcanoes are pretty common in Costa Rica; in fact, we are near Arenal, which is considered the most active volcano in Costa Rica. Arenal has been erupting continuously for more than 30 years, which is a good thing.  What is troubling is when a volcano is not erupting but is due to erupt "sometime this century." Arenal is more like an open pot of boiling water than a pressure cooker without a release valve. It is also 20 km away, with a lake between it and the finca.

Fire — If you plant in an area with a very pronounced dry season, fire can be an issue, especially to younger trees. Teak seems to be pretty much immune to a small forest fire after it is 3 years old, but it is best if you can avoid it. One thing is to beware of people starting fires near your plantation for the purpose of removing brush, etc. In the dry season, it is very easy for a fire to get out of control. The easiest solution is to avoid planting where there is a very pronounced dry season, which is what we do.

Pests — This is the reason for the forestry engineer to come often. There are numerous pests (insects, disease, etc.) that will have to be dealt with. Also, by planting a mix of species instead of monocropping, you can reduce the chance for a disease to spread through the whole plantation. Large animals can be a problem when the trees are young, so you will need to make sure to keep the trees protected with a fence. After 3 years, the trees will be sufficiently large to possibly use young cattle or sheep to keep the weeds down.  Make sure to experiment on a small scale first! This is called agroforestry.

Neglect — We honestly think this is the biggest and most serious risk. 25 years is a very long time, and it is easy to lose your enthusiasm (and maybe your financial resources). Currently there is a considerable amount of poorly grown teak entering the market because people just stuck it into the ground and ignored it.

Poachers — To protect against tree poachers, you must always have people on the property. It takes too much heavy equipment to steal a full-grown tree to sneak in and out quickly. However, if you leave your property alone for a week or more at a time, you could end up with fewer trees. As natural forests become depleted, poachers will tend to target neglected plantations.

Surviving life in the campo — see suicide shower!

There is little chance that the demand for tropical hardwoods will drop. They are in very high demand now and have been for generations. They are essential for indoor and outdoor furniture, flooring and paneling, decking, and shipbuilding. Buyers from other parts of the world are now having difficulty finding enough teak in Costa Rica.

There is no sign of tropical hardwoods being overproduced. For this to threaten the plantation, it would have to have already started. Unlike selling a product that is manufactured, there is no way to speed up the development of a tree.

There is little chance that any variety of wood will become unpopular. An interesting activity in speculation is to grow species that are currently being harvested from the rain forest, but are not widely being grown in plantations. There is a good chance that some of these trees will become very valuable due to scarcity.

There is a chance that some trees will have to be sold during a time of recession, which means you might not receive full valuation. You could be forced to harvest so that you do not lose the growth of nearby trees. However, if you are capable of harvesting your own trees and storing the wood for a year or two, you can minimize this risk.