Forestry Economics: Optimal Rotation Age (Part 1)

This video is a part of Conservation Strategy Fund's collection of environmental economic lessons and was made possible thanks to the support of the Gordon and Betty Moore Foundation and the Marcia Brady Tucker Foundation. This series is for individuals who want to learn - or review - the basic economics of conservation. The Forestry Economics series will look at what influences the decision of when to cut down a forest and the non-market values that should be considered to create an economically efficient system. This video looks at the factors involved in deciding when to harvest a given stand of trees and what the crop rotation period should be. Topics covered include stumpage value, growth rate, maximum sustainable revenue, average and incremental growth, and opportunity cost.

[billsmith]

For Douglas fir in western Washington your analysis of costs would typically go, preparation of unit for planting, planting, meaning labor + seedings delivered to unit in good condition, one time aerial spray of broadleaf herbicide, aerial application of fertilizer, pre-commercial thin, fertilizer, commercial thin, fertilizer, clearcut unit. Fertilizer will vary in timing somewhat, application rate, and number of times, depending on site and growth. Those professional foresters need to make some decisions to earn their pay. How the timber company inserts road system maintenance costs into ROI timing depend on the firm.

The nursery unit that grows the seedlings may get the order four or five years in advance of planting, but is typically paid internally at sale to forestry unit.

[DevineLessons]

These videos are amazing. Helping so much with my MA in Environmental Science. Crash course videos are also great. Thank you for your work :)

[MrGaurav]

Awsome video .. thanks for creating such informative video for Forestry subject. Neglected in developing country.

[andrewkim]

i wish i found this sooner. great video!

[feolav]

You got a new subscriber here. I find your explanation brilliant and cool. Thank you!

[eb]

Thanks for this information! I'm new to this and find it very interesting. One question though; how does the relationship between everything within the forest biosphere impact growth rates? If you rotate cutting sections of forest, and assume it'll grow back all on its own with the help of all those animals and other plants, what happens to everything else once the forest is cut? How is that factored in? It seems forests are treated as things unto themselves, whereas they are living communities that are more than the sum of its parts.

[Naina_adorna.]

this is really really informative. Thank you so much sir

[kugmoco]

Nice video, though v.simplified. Some issues:

1) 7yr rotation, despite warning, will confuse new folks. Why not use 25-30yr lob softwood or 60-70yr hardwood?

2) Costs for planting, thinning, harvest, hunt lease and especially land. Land cost omission is how TIMO's market the =>10% returns while real returns of 3% are more realistic. IMO, land cost omission is probably your biggest lapse, here.

3) Taxes. LTCG, reforestry credit, step up on estate are all big factors in decisions.

[JrKnM]

Please upload videos on all topics of forestry

[Onwardspiffy]

It's really too bad that the Once-Ler didn't get a chance to see this video.

[schmeckles]

Ahh.. the good old days when putting your money in the bank actually gives you interest lol

[miteshraja]

I lost him at hello OK so let's say we cut down a