Harvest Scheduling as a Timber Appraisal Tool

Appraisers often value a forest that contains many different timber stands that can vary due to factors such as age, stocking, species, and site index. Many assumptions are possible on how the various stands will be harvested and what subsequent cash flows might be generated. We describe harvest scheduling methodology that is widely used to obtain the net present value of such a forest under optimal conditions. We illustrate how a popular software package can be used by appraisers to obtain optimal discounted cash flows using harvest scheduling and resulting timber stand values. ChristopherProduction Economics,

Timber Supply Fundamentals for Extension Forestry Professionals

Timber supply is a term forestry professionals often misuse. It is not the same as timber availability. Competing uses for timber, like bioenergy and carbon credits, make a proper definition important. Timber supply has three subsets: biological potential and physical and economic timber supplies. Plus, there is a temporal aspect that creates a relationship between stock and short-run and long-run timber supplies. A change in stock supply automatically triggers a long-run timber supply response in the opposite direction. Timber supply is a complex issue, and this discussion may help Extension professionals educate landowners and avoid mistakes when using the term

Timber Supply Fundamentals for Extension Forestry Professionals

Timber supply is a term forestry professionals often misuse. It is not the same as timber availability. Competing uses for timber, like bioenergy and carbon credits, make a proper definition important. Timber supply has three subsets: biological potential and physical and economic timber supplies. Plus, there is a temporal aspect that creates a relationship between stock and short-run and long-run timber supplies. A change in stock supply automatically triggers a long-run timber supply response in the opposite direction. Timber supply is a complex issue, and this discussion may help Extension professionals educate landowners and avoid mistakes when using the term

FORVAL: Computer Software Package for Agricultural and Natural Resources Investment Analysis

The valuation of agricultural and natural resource investments presents challenging analysis problems that often require the use of computer software. Most of these computer packages are complex and costly. FORVAL is a free, user-friendly, menu-driven, agricultural and natural resource investment analysis package. It can accommodate any investment scenario and includes the standard financial criteria (net present value, rate of return, equal annual income, benefit/cost ratio, and land expectation value for forestry investments). FORVAL accommodates various cash flows like single sum, terminating annual and periodic series, and perpetual annual and periodic series. It also has options for payment and price projections

Vanishing Ghosts of Michigan’s Upper Peninsula Charcoal Iron Industry

One of Michigan\u27s Upper Peninsula\u27s earliest industries was iron production, powered by dozens of charcoal iron furnaces. Charcoal was the fuel for the furnaces and the Upper Peninsula\u27s forests were devastated to produce it. Most of the charcoal was produced in huge brick or stone charcoal kilns, usually located at or near the furnaces, or along the railroad lines for easy transport to the furnaces. These kilns were the chief industry for many early settlements and were local landmarks. Tourists found the igloo-shaped kilns to be fascinating and called them Paul Bunyan\u27s beehives. Gradually, the charcoal kilns have deteriorated. Two reconstructed charcoal kilns have been built as reminders of the industry, one in Marquette and one in Fayette. In 1978 an inventory of Upper Peninsula historic engineering and industrial sites included all the most representative, best preserved charcoal kilns. The survey included then-current photographs of the kilns. This article complements an earlier one in the last volume of this journal that discussed Upper Peninsula charcoal kiln history; the 1978 inventory sites were revisited, and charcoal kiln condition and background are discussed. Includes are current photographs of all charcoal kilns discussed. Major sites were in Marquette, Harvey, Onota, Rock River, Mangum, Fayette, Wilson, Bark River, and Stephenson. Comparison of the 1978 and 2021 photographs shows the charcoal kilns are slowly vanishing

What is your “effective” rate of reforestation cost?

If you are considering a reforestation investment, you should be concerned with its effective cost; ,that is, the cost of reforestation after considering interest arid timing of the tax savings and cost-share payments. Effective regeneration costs depend on your interest rate, marginal tax rate, and whether or not you receive assistance from a state or federal cost-share program

State cost-share programs for nonindustrial private forestry investments

Fourteen states provide cost-share assistance for approved forestry practices. Host programs are intended to increase forest productivity. Funding is typically from state appropriations and/or taxes on primary forest products. Cost-share rates range up to 80 percent, but most programs are at the 50 percent level. All programs require an approved forest management program. Eligible practices are generally reforestation, site preparation, and timber stand improvement

FORVAL: Computer Software Package for Agricultural and Natural Resources Investment Analysis

The valuation of agricultural and natural resource investments presents challenging analysis problems that often require the use of computer software. Most of these computer packages are complex and costly. FORVAL is a free, user-friendly, menu-driven, agricultural and natural resource investment analysis package. It can accommodate any investment scenario and includes the standard financial criteria (net present value, rate of return, equal annual income, benefit/cost ratio, and land expectation value for forestry investments). FORVAL accommodates various cash flows like single sum, terminating annual and periodic series, and perpetual annual and periodic series. It also has options for payment and price projections