The Effects of the New Hampshire Timber Yield Tax on Potential Financial Returns from Forest Management on Private Land

The common assumption of risk neutrality in forest decision making is generally inadequate because the stakeholders tend to be averse to fluctuations in the return criteria. In Markov decision processes (MDPs) of forest management, risk aversion and standard mean-variance analysis can be readily dealt with if the criteria are undiscounted expected values. However, with discounted criteria such as the fundamental net present value of financial returns, the classic mean-variance optimization is numerically intractable. In lieu of this, this paper (i) presents a linear-programming method to calculate the variance of discounted criteria conditional on any specific policy and (ii) adopts, as an alternative to the variance measure of risk, the “discount normalized variance” (DNV), an economically meaningful criterion consistent with income-smoothing behavior. The DNV is then used in procedures analogous to mean-variance analysis and certainty-equivalent optimization tractable by quadratic programming. The methods are applied to the management of uneven-aged, mixed-species forests in the southern United States. The results document the trade-off between the expected net present value and risk of financial returns, as well as the consequences for selected ecological criteria.

Download Full-text

The economic costs of planting, preserving, and managing the world’s forests to mitigate climate change

Nature Communications ◽

10.1038/s41467-020-19578-z ◽

2020 ◽

Vol 11 (1) ◽

Author(s):

K. G. Austin ◽

J. S. Baker ◽

B. L. Sohngen ◽

C. M. Wade ◽

A. Daigneault ◽

...

Keyword(s):

Climate Change ◽

Global Warming ◽

Forest Management ◽

Carbon Price ◽

Private Land ◽

Economic Costs ◽

Mitigation Potential ◽

Mitigation Costs ◽

Mitigate Climate Change ◽

Carbon Prices

AbstractForests are critical for stabilizing our climate, but costs of mitigation over space, time, and stakeholder group remain uncertain. Using the Global Timber Model, we project mitigation potential and costs for four abatement activities across 16 regions for carbon price scenarios of $5–$100/tCO2. We project 0.6–6.0 GtCO2 yr−1 in global mitigation by 2055 at costs of 2–393 billion USD yr−1, with avoided tropical deforestation comprising 30–54% of total mitigation. Higher prices incentivize larger mitigation proportions via rotation and forest management activities in temperate and boreal biomes. Forest area increases 415–875 Mha relative to the baseline by 2055 at prices $35–$100/tCO2, with intensive plantations comprising <7% of this increase. Mitigation costs borne by private land managers comprise less than one-quarter of total costs. For forests to contribute ~10% of mitigation needed to limit global warming to 1.5 °C, carbon prices will need to reach $281/tCO2 in 2055.

Download Full-text

Fuelwood Processing in New Hampshire Becomes a Mature Industry

Northern Journal of Applied Forestry ◽

10.1093/njaf/4.2.76 ◽

1987 ◽

Vol 4 (2) ◽

pp. 76-78

Author(s):

Arthur W. Evans ◽

Richard G. Parker

Keyword(s):

Forest Management ◽

New Hampshire ◽

Major Product ◽

Fuel Wood ◽

Processing Industry ◽

Profit Margins ◽

Annual Output ◽

The Past ◽

Whole Tree ◽

Forest Managers

Abstract In the past few years, New Hampshire's fuelwood processing industry has changed. The majority of output no longer comes from many small entrepreneurs, but from traditional multiproduct loggers. Ninety-four percent of the fuel-wood is marketed by producers whose annual output is over 100 cords. Most are integrated logging businesses; sawlogs are the major product, but fuelwood averages 30% of the output. Whole tree chips comprise 19% of the fuelwood output. Survey respondents reported that profit margins were satisfactory for cordwood and marginal for biomass chips. With more multi-product harvesting, and larger, better equipped fuelwood contractors, forest managers may be better able to utilize increased fuelwood demand to improve forest management. North. J. Appl. For. 4:76-78, June 1987.

Download Full-text

A Strategic Forest Management Model for Optimizing Timber Yield and Carbon Sequestration

Forest Science ◽

10.1093/forsci/fxaa043 ◽

2020 ◽

Author(s):

Marc-André Carle ◽

Sophie D’Amours ◽

Riadh Azouzi ◽

Mikael Rönnqvist

Keyword(s):

Forest Management ◽

Carbon Storage ◽

Forest Products ◽

Carbon Stocks ◽

Management Scenarios ◽

Management Activity ◽

Ecosystem Carbon ◽

Timber Yield ◽

Carbon Losses ◽

Forest Managers

Abstract Strategic forest management planning models designed to maintain existing carbon stocks and maximize capacity for future sequestration can help identify underused opportunities to increase carbon stocks without diminishing other forest products. This study proposed a carbon stock unit that allows summing up the stocks in the different forest pools even if the decomposition far exceeds the planning horizon. This unit is used to integrate the methods and algorithms from the Carbon Budget Model of the Canadian Forest Sector (CBM-CFS3) model into a wood supply model. The resulting model could be used to predict changes in carbon stocks, transfers between carbon pools, and greenhouse gas emissions that would result from every forest management activity. We tailored this model to meet different strategies: maximizing carbon storage in the forest, maximizing high-sustained timber yield, and achieving the dual objectives of yield and carbon storage. A range of management scenarios were simulated using the data of a 485,000 hectares mixed-wood forest in Quebec, Canada. Our results demonstrate that, with the reduction in the harvest rates, the increase in the ecosystem carbon storage is insufficient to offset the carbon losses associated with the increase in the harvest rates. Study Implications In this article, we adopt the perspective of forest managers who contend that removing lumber from the forest can be achieved in a responsible way or in a way that does not affect the carbon stocks in the forest in the long term. We propose a model that integrates methods and algorithms from the CBM-CFS3 model to simulate carbon dynamics of aboveground and belowground biomass and dead organic matter, including soils. The model can be used to predict carbon storage potential within a forest region assuming a given management strategy. We used data of a large forest area to develop a number of sophisticated scenarios of strategic forest planning. Our results are consistent with the forest managers’ contentions. When carbon was maximized regardless of volume, the increase in the ecosystem carbon storage was insufficient to offset the carbon losses associated with the reduction in the harvest rates.

Download Full-text

Timber supply implications of natural disturbance management

The Forestry Chronicle ◽

10.5558/tfc75497-3 ◽

1999 ◽

Vol 75 (3) ◽

pp. 497-504 ◽

Cited By ~ 9

Author(s):

Glen W. Armstrong ◽

Steven G. Cumming ◽

Wiktor L. Adamowicz

Keyword(s):

Forest Management ◽

Computer Model ◽

Natural Disturbance ◽

Forest Growth ◽

Yield Management ◽

Timber Supply ◽

Timber Yield ◽

Model Of Management ◽

Disturbance Management ◽

Disturbance Model

The timber supply implications of applying an interpretation of the natural disturbance model (NDM) of forest management were examined, using a computer model simulating forest growth and harvest. Under the natural disturbance model, much less timber was available for harvest than under maximum sustained timber yield management. Several questions relating to implementation of the natural disturbance model of management are raised with the intent of stimulating some discussion.

Download Full-text

Community forest management: Comparison of simulated production and financial returns from agarwood, tengkawang and rubber trees in West Kutai, Indonesia

Biodiversitas Journal of Biological Diversity ◽

10.13057/biodiv/d190119 ◽

2018 ◽

Vol 19 (1) ◽

pp. 126-133 ◽

Cited By ~ 3

Author(s):

ABUBAKAR M. LAHJIE ◽

ISMINARTI ISMINARTI ◽

B.D.A.S. SIMARANGKIR ◽

R. KRISTININGRUM ◽

YOSEP RUSLIM

Keyword(s):

Forest Management ◽

Natural Rubber ◽

Net Present Value ◽

Financial Analysis ◽

Community Forest Management ◽

Financial Returns ◽

Community Forest ◽

Net Benefit ◽

Planted Forests ◽

Annual Increment

Lahjie AM, Isminarti, Simarangkir BDAS, Kristiningrum, R, Ruslim Y. 2018. Community forest management: Comparison of simulated production and financial returns from agarwood, tengkawang and rubber trees in West Kutai, Indonesia. Biodiversitas 19: 126-133. Research was conducted in planted forests of agarwood (Aquilaria spp.) and tengkawang (Shorea macrophylla) and in plantations of natural rubber (Hevea brasiliensis) in West Kutai District, East Kalimantan Province, Indonesia. The research aimed (i) to find out the productivity of agarwood and tengkawang trees in mixed plantings (ii) to measure their rate of development in order to estimate the maximum Mean Annual Increment (MAI) for agarwood and tengkawang and (iii) to carry out a comparison with natural rubber production of the investment feasibility of planted forests of these trees using a financial analysis of Pay Back Period, Net Present Value (NPV), Net Benefit/ Cost (B/C) Ratio and Internal rate of Return (IRR). The research was based on measurements carried out in plots, 0.25 ha in extent, selected by systematic random sampling from three model plantations. Plantation Model I was a combination of agarwood and tengkawang in one piece of land in which the agarwood trees were planted at a spacing of of 5m x 2.5m and the tengkawang tree were also planted at a spacing of 5m x 2.5m. This means that there were a total of 200 agarwood saplings and 200 tengkawang saplings in the plot. Model II was the combination of agarwood and tengkawang in one piece of land, in which 167 agarwood saplings were planted and 166 tengkawang saplings were planted in a different planting arrangement (at the planting distance of 5m x 3 m). Model III was rubber trees in an area of 0.25 ha with 119 saplings. The data for natural rubber were collected in series from the farmers. The measurement variables for agarwood and tenkawang included the diameter and height of trees using series measurement until they reached 30 years and then the results were simulated. The research findings showed that in Model I, agarwood was found to have higher maximum MAI while in Model II, tengkawang was found to have higher maximum MAI. This was the result of a silvicultural technique in which thinning, maintenance and intermediate harvest were carefully controlled. These two models were feasible for business because the values of their IRR were 14% and 13.3% respectively, while in Model III, rubber cultivation was not feasible for business because the value of its IRR was only 4.7%.

Download Full-text

Moving toward consensus-based forest management: A comparison of industrial, co-managed, community and small private forests in Canada

The Forestry Chronicle ◽

10.5558/tfc74736-5 ◽

1998 ◽

Vol 74 (5) ◽

pp. 736-744 ◽

Cited By ~ 31

Author(s):

Thomas M. Beckley

Keyword(s):

Decision Making ◽

Forest Management ◽

Community Forestry ◽

Management Systems ◽

Private Land ◽

Private Forests ◽

Public And Private ◽

Practical Applications ◽

Community Forests ◽

Forest Tenure

Research on forest management in North America has traditionally focussed on large, industrial forest tenures (involving both public and private land), or small, private woodlot management. Recent discussion and experiments in Canada involve new institutions for forest management. These alternative forest management systems — namely, co-managed forests and community forests — are compared to traditional forest management along several dimensions, including: locus of decision-making, nature of decision-making, scope of decision-making, tenure structure, scale, and knowledge base. There exists a gap between abstract discussions and practical applications of these models. Prospects for the continued development of these alternative management systems are evaluated. Key words: co-management, community forestry, decision making, forest tenure, forest management objectives

Download Full-text

Integrating Forestry and Wildlife Management: The View of the Private Land Timber Resource User

The Forestry Chronicle ◽

10.5558/tfc61156-2 ◽

1985 ◽

Vol 61 (2) ◽

pp. 156-158

Author(s):

P. P. Hynard

Keyword(s):

Forest Management ◽

Key Words ◽

Land Management ◽

Wildlife Management ◽

Private Land ◽

Private Forest ◽

Timber Sales ◽

Property Income ◽

Wood Procurement ◽

Forest Lands

The users of the private land timber resource include the landowner (who uses it for property income), the logger, and the mills dependent on local timber supply.The objectives of landowners vary considerably, as do their dependence on timber sales for income and their use of the property for personal recreation. Loggers tend to view forestry-wildlife integration unfavourably wherever this results in increased logging costs. The forestry interests of the local mills are similarly those of timber availability, wood procurement costs and freedom from disruption of supply. Key words: Forest management, private forest lands, integrated land management, wildlife management.

Download Full-text

The Culture of Farming by Farmers in the Production Forest Management Unit (KPHP) of Batulanteh, Sumbawa Regency

Jurnal Agroforestri Indonesia ◽

10.20886/jai.2020.3.1.19-28 ◽

2020 ◽

Vol 3 (1) ◽

pp. 19-28

Author(s):

Dian Diniyati ◽

Budiman Achmad

Keyword(s):

Forest Management ◽

Development Policy ◽

Policy Making ◽

Arable Land ◽

Private Land ◽

Harvest Time ◽

Daily Consumption ◽

Land Preparation ◽

Head Of Household ◽

Environmental Goals

Farming is the main livelihood of farmers in Sumbawa which is culturally heritated in their live. The purpose of this study is to describe the culture of farming carried out by farmers so that the development policy making can be more directed. This activity was carried out in the Sumbawa Batulanteh KPHP area in August and October 2016. Data were collected through open interviews with 34 respondents living in the area and 34 respondents living outside the area, while the collected data was analyzed descriptively. The total area of arable land by farmers living in the area was 1 hectare per head of household (hh), while those living outside the area were 1.75 hectare / hh. The results of the study showed that farming activities were carried out on arable land and on private land. The longest distance of arable land to the location of residence was 3 km. Agroforestry patterns were chosen by farmers to meet economic and environmental goals. Farmers were not only trying to meet their daily consumption needs, but also their investment needs. Farming activities were influenced by the season, where during the rainy season the activities were planting, whereas during the dry season the activities were only in the form of land preparation. Farmer culture in clearing land was by chopping and burning because it was cheaper and easier, while at harvest time, the waste was returned to the field as compost to fertilize the soil.

Download Full-text