Estimating investment returns from growing red pine.

Abstract

This paper describes how to estimate present values of incomes and costs in growing red pine trees for sale as cordwood or sawtimber, and how to calculate expectation values and rates of return for a wide range of timber-growing conditions, using the tables of expectation value indexes and interest rate multipliers provided. It illustrates how to compare investment opportunities in growing red pine, how to determine the amount one can afford to invest to buy land, establish and maintain a stand, or pay in annual taxes or other expenses, and how to estimate the cost of producing stumpage under specified conditions. In addition, those who want only an approximation of investment returns from growing red pine will find examples for several levels of income costs on poor (site index 45) and good (sit index 60) sites.

Citation

Lundgren, Allen L. 1966. Estimating investment returns from growing red pine. Research Paper NC-2. St. Paul, MN: U.S. Dept. of Agriculture, Forest Service, North Central Forest Experiment Station