Journal of Forest Economics > Vol 16 > Issue 2

Financial analysis of intensive pine plantation establishment

Phillip D. Jones, pdj34@msstate.edu , Stephen C. Grado, Stephen Demarais
 
Suggested Citation
Phillip D. Jones, Stephen C. Grado and Stephen Demarais (2010), "Financial analysis of intensive pine plantation establishment", Journal of Forest Economics: Vol. 16: No. 2, pp 101-112. http://dx.doi.org/10.1016/j.jfe.2009.09.001

Publication Date: 0/4/2010
© 0 2010 Phillip D. Jones, Stephen C. Grado, Stephen Demarais
 
Subjects
 
Keywords
JEL Codes:Q230Q570
Cost-shareHerbaceous weed controlIntensive managementLand expectation valueNet present valueNIPF landownersPine plantationSite preparation
 

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In this article:
Introduction 
Data source 
Methods 
Results 
Discussion 
Conclusions 

Abstract

We analyzed the financial impacts of intensive loblolly pine (Pinus taeda) plantation establishment in the southern United States using projected growth data. Optimized management yielded positive net present values (NPVs) at all combinations of management intensity and discount rate except for the most intensive management at the highest discount rate. Cost-share payments for site preparation improved the performance of higher intensity treatments relative to lower intensity treatments, and yielded positive NPVs in all combinations of management intensity and discount rate. Landowners can choose among a suite of management intensities covering a wide range of capital commitments. Monetary returns may be improved by additional management actions, and by taking advantage of additional cost-share programs and tax benefits.

DOI:10.1016/j.jfe.2009.09.001