Increment Contracts: Southern Experience and Potential Use in the Appalachians
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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