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The Problem of Interest in Forestry

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The large amount of capital required in a forestry enterprise and the large time element involved makes the subject of the interest return important. Compound interest applies to all forests growing toward or awaiting future harvesting, but the formulae of compound interest are valid only when a safe rate is used. When the rate used is greater than the pure or time valuation rate there is a distortion of the ratio between the part of the return representing pure interest and the part representing risk or profit.

Document Type: Journal Article

Affiliations: Valuation Engineer, Bureau of Internal Revenue, Washington, D. C.

Publication date: May 1, 1931

More about this publication?
  • The Journal of Forestry is the most widely circulated scholarly forestry journal in the world. In print since 1902, the Journal has received several national awards for excellence. The mission of the Journal of Forestry is to advance the profession of forestry by keeping forest management professionals informed about significant developments and ideas in the many facets of forestry: economics, education and communication, entomology and pathology, fire, forest ecology, geospatial technologies, history, international forestry, measurements, policy, recreation, silviculture, social sciences, soils and hydrology, urban and community forestry, utilization and engineering, and wildlife management. The Journal is published bimonthly: January, March, May, July, September, and November.
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