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A Service Foresters' Guide to Investment Terminologies--Which Ones Are Most Easily Understood By Landowners?

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Abstract:

Discounting and its results: present net values, soil expectation values, net annual equivalents, and other similar measures, though standard in forestry evaluations, are unnecessary and confusing terms to a large segment of those interested in timber investments. There are just 2 measures that will tell most small forest landowners all they usually want to know about such investments. These measures are the rate of return and whether this rate has been adjusted for inflation (the real rate) or not adjusted for inflation (the nominal or market rate). The other terms, which are often understandable only to evaluation specialists, should be omitted from our vocabulary when dealing with the average small landowner/investor.

Document Type: Journal Article

Affiliations: Forest economist, USDA Forest Service, Southern Region, S&PF, Atlanta, Georgia 30367

Publication date: 1984-08-01

More about this publication?
  • Each regional journal of applied forestry focuses on research, practice, and techniques targeted to foresters and allied professionals in specific regions of the United States and Canada. The Southern Journal of Applied Forestry covers an area from Virginia and Kentucky south to as far west as Oklahoma and east Texas.
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