Reprod Valuations

dwheeler at dwheeler at
Wed Jan 28 13:11:21 EST 1998

In article <01bd2ba0$092c45a0$2ea819d0 at jfrostP>,
  "Jim " <jimfrost at> wrote:
> I'm doing reprod valuations on Douglas-fir plantations.  I use my growth
> and yield tables to provide an estimated volume at the end of a determined
> rotation, apply today's prices and move the amount back to present value.
> Questions,
> If I plan on conducting a thinning along the way, what amount of volume
> would I base the amount of projected income on.  I have records that would
> allow me to calculate a number from within my office but I'm looking for
> published material.  Are there tables that supply these volumes?
> Should I even include this thinning?
> What interest rate do I use to move it all back to present net value?  I've
> heard I should use average interest rates from the Federal Land Bank (about
> 10%) and I've heard interest rate from US Treasury Bonds.  I'm assuming
> this is quite lower but I haven't found anything that provides a concrete
> average for bonds.
> Any ideas are appreciated.
> Jim

Can't help you with the economics Jim. As for thinning, the economics
suggest this is economic only for longer periods of time. It will take
about two years for trees to start to increase growth after an extensive
thinning, at least in the Willamette Valley, Clackamas Co, and Clark
County, WA. However, the remaining trees will start to put on much more
biomass after this time. Several old-time tree thinners in Clackamas
County swear by thinning, and Clackamas County Farm Forestry Association
in their "Trees Forever" program are managing their forests exactly this
way. Some have even inoculated with truffles. ;)

Vic Em who started thinning Ponderosa Pine in the late 1930's purchased a
property he calls the Tie Tree Farm in the late 1950's on site 3 land. He
has been thinning and selective harvesting ever since. He has been
keeping pretty good records on this farm, and claims to have more biomass
today on his property, and bigger trees, than he started out with.

But he knew it was going to be a long-term commitment. His major product,
by the way, is pole logs (for telephone poles), which he prunes to at
least 30 feet. The last time I saw Vic he was over 70 and had just cut a
110-foot tree for demonstration purposes for CCFFA, about 5-6 years ago.

Daniel B. Wheeler

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