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Economic Potential of Black Walnut on Small Acreage Tracts

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Small acreage tracts, many previously in row-crop production, have limited economic potential for more traditional southern agricultural enterprises. These tracts, however, may provide a future source of income through the plantings of intensively managed tree crops. Black walnut (Juglans nigra L.) can be a profitable alternative on tracts that are not conducive to shorter rotation tree crops. However, only limited financial information is currently available on the economic potential of black walnut in the southern region. This article presents an array of financial information from the economic analysis of a "typical" black walnut plantation. The results indicate that black walnut for lumber and veneer is financially attractive for southern farmers showing positive net present values over a wide range of discount rates with a before-tax internal rate of return of 10%. Annual equivalent values also indicate that net returns are equivalent to those obtained with the planting of annual crops. South. J. Appl. For. 17(2):64-68.
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Document Type: Journal Article

Affiliations: Forestry, Wildlife, and Fisheries, Agricultural Extension Service, University of Tennessee, Knoxville, TN 37901-1071

Publication date: 01 May 1993

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