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Comparative Views of Different Stumpage Pricing Systems: Canada and the United States

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Canada and the United States have many similarities, but major differences in the ownership and tenure of forestlands. These differences generate substantial differences in the way stumpage prices are determined in the two countries. These differences, including the argument that the absence of stumpages markets results in the de facto subsidization of Canadian stumpage prices, are used to justify the host of US trade restrictions on Canadian softwood lumber imports. This article examines the differences in the tenure systems. It cites the arguments commonly given in the dispute and draws out the implications of these systems on softwood resource prices. It discusses some studies, and alternative markets systems, currently under discussion to addresses the criticisms of the Canadian system and critiques one of the major proposals.

Keywords: Canada; Forest; US; international trade; markets; stumpage; tenure

Document Type: Research Article

Affiliations: Roger A. Sedjo, Senior Fellow and Director of the Forest Economics and Policy Program, Resources for the Future, 1616 P Street NW, Washington, DC 20036—Phone: (202) 328-5065;, Fax: (202) 939-3460

Publication date: August 1, 2006

More about this publication?
  • Forest Science is a peer-reviewed journal publishing fundamental and applied research that explores all aspects of natural and social sciences as they apply to the function and management of the forested ecosystems of the world. Topics include silviculture, forest management, biometrics, economics, entomology & pathology, fire & fuels management, forest ecology, genetics & tree improvement, geospatial technologies, harvesting & utilization, landscape ecology, operations research, forest policy, physiology, recreation, social sciences, soils & hydrology, and wildlife management.
    Forest Science is published bimonthly in February, April, June, August, October, and December.

    2015 Impact Factor: 1.702
    Ranking: 16 of 66 in forestry

    Also published by SAF:
    Journal of Forestry
    Other SAF Publications
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