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Increment Contracts: Southern Experience and Potential Use in the Appalachians

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Increment contracts are long-term timber management contracts in which landowners receive regular payments based on the average annual growth of wood their land is capable of producing. Increment contracts have been used on nearly 500,000 acres of private forests in the South. Southern experience suggests that several changes in the contract would improve its utility: the contract period should be shortened, the percentage of annual growth used to determine payments to landowners, should be reduced, and payments should be based on published stumpage or product price reports. With these changes, there would be opportunities for, and benefits of, using increment contracts in the central Appalachians. In the near future, increment contracts may be used in parts of the Appalachians when competition for stumpage is keen.
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Document Type: Journal Article

Affiliations: Economist, USDA Forest Service, Timber and Watershed Laboratory, Parsons, WV 26287

Publication date: 1984-12-01

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  • 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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