Economic rationale for planting less trees in the face of seedling mortality

Abstract

Simple economic analyses are used to demonstrate that planting extra trees to compensate for initial seedling mortality can actually reduce the profit expected from a pine plantation. At a 6-percent interest rate, the cost of planting 15 or 25 percent additional seedlings compounded to the end of a 30-year rotation exceeds the revenue lost to these rates of seedling mortality when the initial target density is 700 and 800 seedlings per acre, respectively. At 8 and 10-percent interest rates, the compounded costs of the additional seedlings always exceed the revenue lost to seedling mortality. Comparing the marginal costs and benefits of increments of 50 seedlings indicate that optimal planting density decreases in the face of severe seedling mortality. Seedling mortality represents an inefficiency in a forest production system, and unless establishment efficiency can be improved, planting costs will have to be reduced to maximize profitability.

Citation

Dean, Thomas J.; Chang, S. Joseph. 2002. Economic rationale for planting less trees in the face of seedling mortality. In: Gen. Tech. Rep. SRS–48. Asheville, NC: U.S. Department of Agriculture, Forest Service, Southern Research Station. pg. 149-152