Economic investigations of short rotation intensively cultured hybrid poplars

Abstract

The history of the economic analyses is summarized for short rotation intensively cultured hybrid poplar at the North Central Forest Experiment Station. Early break-even analyses with limited data indicated that at a price of $25-30 per dry ton for fiber and low to medium production costs, several systems looked profitable. Later cash flow analyses indicated that two systems without irrigation and fertilization could achieve internal rates of return of 8 percent with a 5 percent inflation rate. However, two systems with irrigation and fertilization had negative internal rates of return. All systems had negative net present values when a 10 percent discount rate was used. We are currently incorporating risk analysis into our financial investigation to directly account for uncertainty in the performance calculations.

Parent Publication

• Intensive plantation culture: 12 years research

Citation

Lothner, David C. 1983. Economic investigations of short rotation intensively cultured hybrid poplars. In: Hansen, Edward A., ed. Intensive plantation culture: 12 years research. Gen. Tech. Rep. NC-91. St. Paul, MN: U.S. Department of Agriculture, Forest Service, North Central Forest Experiment Station: 139-148.