16A.20
S,N - Economic analysis of low density management on loblolly pine plantations in East Texas
Ching-Hsun Huang, Stephen F. Austin State University, Nacogdoches, TX; and G. D. Kronrad
Low density management has potential to increase the production of clear wood and the profitability of loblolly pine (Pinus taeda L.) management on nonindustrial private forest lands in East Texas. A quantitative analysis investigated the effects of stand density, and the frequency, intensity and timing of commercial thinning(s) on landowner’s financial returns. To determine the best management regime, PTAEDA2, a forest stand simulator, was used to predict stand growth. Variables included site indices ranging from 50 to 90 (base age 25), rotations up to 60 years in length, and thinning intensities ranging from 40 to 70 percent for the first thinning and 20 to 60 percent for the second thinning. Cash flow analyses were conducted on the results of each operable thinning and harvest regime using real ARRs from 2.5 to 15.0 percent. Soil expectation value (SEV) was used as the financial criteria to determine the optimal financial thinning and harvest schedules. A total of 5,131,710 operable thinning and harvest combinations and cash flow analyses were calculated. Results indicate that landowners who have a real ARR of 2.5 percent will earn an SEV of $9,566.56 per acre on site index 90 land, and $1,661.50 per acre on site index 50 land. Forest management is profitable on land with site indices 50 through 90 using real ARRs of 2.5 and 5.0 percent. Using a real ARR of 7.5 percent, forest management is profitable on site indices 60 through 90. Forest investments are profitable on site indices 70, 80 and 90 land for landowners with an ARR of 10.0 percent and on site index 80 and 90 land for landowners with an ARR of 12.5 percent. Given current stumpage prices and labor costs, forest management is profitable for landowners who demand a 15% rate of return on site index 90 and better land.
Session 16A, Other
Wednesday, 9 October 2002, 1:30 PM-1:30 AM
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