Financial Analysis of Pruning Douglas-Fir and Ponderosa Pine in the Pacific Northwest

Authors: Fight, Roger D.1; Bolon, Natalie A.1; Cahill, James M.1

Source: Western Journal of Applied Forestry, Volume 8, Number 2, 1 April 1993 , pp. 58-61(4)

Publisher: Society of American Foresters

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Abstract:

Recent lumber recovery studies of pruned and unpruned Douglas-fir (Pseudotsuga menziesii var. menziesii) and ponderosa pine (Pinus ponderosa var. ponderosa) were incorporated into computer software using lumber grade prices, growth and yield data, the cost of pruning, and interest rates to determine the expected financial return from pruning. Financial analyses showed that the cost of pruning at which the investment would yield an expected 4% real rate of return was positive on sites where individual tree growth is fairly high, pruning is done as early as biologically possible given limitations on crown removal, and the harvest is 30 to 70 yr after pruning. The better situations in Douglas-fir showed a breakeven cost of up to $21/tree and an internal rate of return exceeding 9%. The better situations in ponderosa pine showed a breakeven cost of up to $11/tree and an internal rate of return of 7%. West. J. Appl. For. 10(1):58-61.

Document Type: Journal article

Affiliations: 1: USDA Forest Service, Pacific Northwest Research Station, Portland, OR 97208

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