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The Importance of Land Opportunity Cost in the Determination of Financial Rotations

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Alternative approaches to financial rotation determination are discussed. In the past, it has been assumed that the importance of land opportunity cost, in financial rotation determination, is proportional to the magnitude of this cost. From recent work on Douglas-fir in British Columbia it appears that the importance of land opportunity cost depends principally on prevailing market conditions, related to tree size and quality. It is not safe to ignore the opportunity cost of land, when calculating financial rotations, without first investigating the nature of the stand's value growth function.

Document Type: Journal Article

Affiliations: Graduate Student, University of British Columbia Faculty of Forestry

Publication date: May 1, 1966

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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