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The Financial Cost to Forest Landowners Who Implement Forest Management Guidelines: An Empirical Assessment

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To assess the financial costs that forest landowners incur when applying Minnesota's forest management guidelines, we conducted a study involving 27 public timber tracts auctioned in fall 2002. Each tract was offered in two ways–with and without the requirement to use guidelines–and loggers submitted paired bids. Stumpage bids averaged $2.66 per cord (10 percent) lower when guidelines were required. Across the study tracts, use of the guidelines decreased harvestable timber volume an average of 2.4 cords per acre. Taken together, the financial cost of guidelines to a forest landowner averaged $136 per acre, suggesting a minimum benefit value if their use is to be justified on financial grounds.

Keywords: best management practices; economics; environmental management; forest; forest management; forest resources; forestry; forestry research; forestry science; harvesting; natural resource management; natural resources

Document Type: Miscellaneous

Affiliations: 1: Assistant Professor Department of Forest Resources, University of Minnesota, 115 Green Hall, 1530 Cleveland Avenue North, St. Paul, MN, 55108-6112, mkilgore@umn.edu 2: Professor Department of Forest Resources, University of Minnesota, 115 Green Hall, 1530 Cleveland Avenue North, St. Paul, MN, 55108-6112

Publication date: December 1, 2003

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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