Recent Changes in Panama Immigration Laws Effect Reforestation Visas

Tags: Panama, Panama Law, Panama Visas, Panama Immigration Law, Panama Reforestion Visa, managed forests, PanAmerican Properties, ANAM, paulowniaThe new Immigration Law of the Republic of Panama, Executive Decree No. 320 of 8 August 2008 which regulates law No. 3 of February 22 2008 has made substantial changes in the requirements to be eligible to apply for a reforestation visa in this country. Section No. 2 of this law on page 22 of the original text which can be read in its entirety in English at the following url http://www.panampro.com/index_archivos/law.htm   has increased the minimum investment from $40,000 USD to $60,000 USD and has added an additional requirement of the acquisition of at least 10 hectares of land.

This provision of the law allows both for individual or corporate ownership of the land or an investment of at least 10 hectares of managed forest relieving the investor from the necessity of managing the property themselves and dealing with the onerous labor laws, the social security requirements and the constant holidays which plague the nations development.

However much is to be said about the structure of the law. Projects now need to be registered by ANAM, the country’s National Environmental Agency which hopefully will establish stricter controls and regulation of reforestation in Panama.

This new legal initiative opens the door for better regulation of tax laws regarding reforestation and greater opportunity for protecting our nation’s forests by establishing “Chain of Custody” requirements for these managed plantations.   Hopefully it will be the beginning of more selective requirements controlling which species of tree will be eligible for tax exemptions.

One such tree should be paulownia elongata, the Princess Tree, because of not only its high market value but because of the benefits it offers to Panama. Paulownia has a complete growth cycle in 8-10 years reaching the size of native hardwoods in one third the time. Such a growth rate offers potential opportunities to eliminate the crisis of extreme poverty in the rural areas of the country.

Paulownia also offers nutritive value to local fauna and the top soil because its leaves have a 26% protein content and rapidly decompose. Unlike teak and other hardwoods, paulownia creates natural fire barriers during the dry season because its ignition point is 425 degrees centigrade four times that of boiling water.  

For more information on paulownia in Panama you may visit our web site www.paulownianow.org or for investment opportunities in managed paulownia forests of Panama www.panampro.com. You may also contact us via email at info@paulownianow.org  

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A Comparative Analysis of the Advantages of Growing Paulownia vs.Teak

Tags: paulownia, teak, Panama, reforestation, environment, ecology, Chain of Custody A few years ago teak was considered the panacea of solutions for socio economic problems in Panama. But, today, the harsh reality of growing teak is widely known. Recognized in many countries as a weed, Panama is one of the few nations in the world that gives tax incentives for planting Tectona Grandis, teak.

It is thoroughly understood that teak damages the environment. The fall of teak leaves is one of the principal causes of severe erosion and fire throughout the country. The high oil content of the tree and leaves is like tinder or kindling for fires during the dry season. When the leaves fall to the ground, they do not disintegrate rapidly and serve no useful function in the forest either as natural fertilizer or feed for animals.

Today there are huge forests of teak all over Panama.  Instead of contributing to the nation’s economy, they are actually depleting the national treasury through tax deductions provided to the wealthy.  Globally there are more offers to sell teak than to buy.

Many of these stands of teak are more than twenty years old. Why aren’t they being sold? There are two primary reasons: one the price of teak in Panama is not in synch with the realities of the price of teak on the world market and two, buyers today are more informed and are requesting documentation that most Panamanians cannot provide because they have not made the financial investment necessary for this type of venture, instead their interests have been to hide money from taxation. “Chain of Custody” documents are one of the key requirements for selling lumber in today’s world market. This documentation proves that the producer is not damaging the environment or jungle to extract lumber.

Today, there is a new alternative for agroindustry and multidimensional farming. This new paradigm of agroforestry allows for a mix of the traditional with the nontraditional generating more income for the farm and at the same time restoring the ecology of the nation. A study done by USAID/AED “A FINANCIAL ANALYSIS OF SUSTAINABLE CATTLE FARMING SYSTEMS IN THE WATERSHED OF THE PANAMA CANAL” dated June 2005 proves the economic viability of raising cattle with trees. Although the study mentions some species of trees, it does not mention species with high agricultural value. Selecting the correct species will not only serve as a source of income but also function as an integral and important part of the daily life of the farm.

Paulownia could be that species. Paulownia is recognized as the fastest growing tree in the world, the aluminum of hardwood trees. Grown for hundreds of years on the Pacific Rim, paulownia has a greater value than teak on the world market and offers the opportunity to have three harvests in the time it takes for teak to have one.

The paulownia leaves are used in many parts of the world has feed for animals because of its high nutritive value.

With the price of land in the clouds today, farms are smaller and farmers must maximize the economic utility of every hectare. Different than teak, after two years, the farmer can graze cattle between the paulownia trees without damaging them.

Paulownia increases the fertility of the land. The leaves disintegrate rapidly feeding the natural grasses which control erosion of top soil. Paulownia also functions as a natural firebreak. The ignition temperature of paulownia is approximately 425 degrees centigrade. Teak has a flash point of a little more than 100 degrees centigrade about that of boiling water.  

All of these elements combined: the world market price, world supply and demand, speed of growth, and a quick return on investment compared to teak, the nutritional value of paulownia as feed for animals, the benefit to top soil as a fertilizer and finally the ignition point of paulownia make paulownia an ideal addition to today’s  farms. For more information on paulownia or to buy seeds, seedlings or round poles you may visit our web site www.paulownianow.org or write us at info@paulownianow.org . If you are looking for investment opportunities in reforestation please visit www.panampro.com.  

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