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Using Break-even Analysis for Replanting Decisions in Damaged Pine Stands

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Abstract:

A break-even technique based on land expectation value is used to evaluate the economic consequences of plantation replant/no-replant decisions following a catastrophic loss. The after-tax break-even point, defined as the percentage volume loss incurred before it pays to replant, initially increases with stand age, levels off for several years, then decreases late in the rotation. The cost of an incorrect replant/no-replant decision follows a similar pattern, and is small when actual mortality is close to the break-even point. The break-even point and the cost of a wrong decision at a given stand age are both strongly influenced by the cost of capital. South. J. Appl. For. 12(3):186-189.

Document Type: Journal Article

Affiliations: School of Forestry and Alabama Agricultural Experiment Station, Auburn University, Auburn, AL 36849

Publication date: 1988-08-01

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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