Determining the Initial Annual Payment for a Long-Term Timberland Lease
Abstract:A method to determine the initial lease payment for a long-term timberland lease is presented from the viewpoint of both the landowner and the firm. The firm's analysis determines the maximum annual lease payment with an after-tax present value equal to the after-tax present value of the anticipated harvest income less all contract costs. The landowner's analysis equates the present value of a series of (less risky) indexed lease payments to the present value of a (more risky) timber production investment alternative.
Document Type: Journal Article
Affiliations: KMI Land Resources, Louisa, VA 23093
Publication date: November 1, 1985
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- 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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