In article <1998082420553800.QAA14515 at ladder01.news.aol.com>, kmorrisd at aol.com
>That's what we all should be looking at: REAL VALUE GROWTH. Some might
>wonder about whether or not to include inflation, but since we're usually
>values into the future, where the rate of inflation is unknown, it makes
>sense to use `real` or `uninflated` value growth.
I don't typically have to do financial analysis for landowners from whom we buy
timber. However, I find many sellers who don't want to clearcut decide, on
their own, to use some kind of diameter limit scheme. Often the diameter limit
is so low there would be nothing but bushes left. Highgrading at it's worst.
What I usually try to convince them is to let us select the trees, cutting the
good grade timber and suppressed or diseased trees. What we leave are the
pulpwood and chip-n-saw trees that are closest to growing into the next product
class. The emphasis is on leaving the fastest value growth in the woods. The
grade sawlogs are only increasing in volume.
It's a kind of nuts and bolts approach to what you guys have been talking
The only problem is that I can't offer as much money lump sum as my competitor
who will do exactly what the landowner wants in the first place. Money talks.
Some folks won't see the truth even if you hit them over the head with it.
Alabama Registered Forester
~~~> The forest may be quiet, but that doesn't mean all the snakes have left.