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Analysis of Stumpage Rate Adjustment Policy on Western National Forests

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This study analyzed the effect of USDA Forest Service stumpage rate adjustment (SRA) on timber revenues and initial stumpage bids. SRAs adjust harvest prices up or down from initial bid prices, based on subsequent product market indices. Revenue generation was addressed by simulating harvest revenues from 600 timber sales from the western United States during the 1980s and early 1990s. The current 50/100 policy (50% of price index increases and 100% of price index decreases) performed poorly, and the 100/50 option performed best. The effect of SRA policy on initial bid prices was analyzed with statistical models constructed from 1813 timber sales. In Region 6, stumpage prices received from flat rate sales exceeded those from SRA sales by about 3%, but in the aggregate of other western Regions (Regions 1-5), stumpage prices for SRA sales exceeded those of flat rate sales by about 12%. West. J. Appl. For. 10(2):53-58
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Document Type: Journal Article

Affiliations: Intermountain Research Station, USDA Forest Service, Missoula, MT 59807

Publication date: 1995-04-01

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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 Western Journal of Applied Forestry covers the western United States, including Alaska, and western Canada; WJAF will also consider manuscripts reporting research in northern Mexico that has potential application in the southwestern United States.
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