Comparing short-term financial aspects of four management options in Oregon: Implications for uneven-aged management

Abstract

Private family forest owners are often more interested in comparing short-term financial outcomes of management options, as opposed to longer time horizons and classical economic analyses including net present value. Therefore, we compared projected 10-year value of timber and land for four theoretical management scenarios starting with stands ripe for thinning. The options were (1) hold for 10 years (i.e. no thinning), (2) thin for even-age, or (3) partial cut for uneven-age and (4) clearcut now. To simulate the outcomes of these scenarios, we marked and measured 2-ha plots in 10 stands typical of private forest ownerships across Oregon and projected timber yields and revenues. The financial analysis included current market values for logs, payment of taxes and typical reforestation costs and computation of net asset values (NAV) at a 7 per cent interest rate. The hold option consistently gave the highest NAV for timber and land after 10 years, and the thin option was within 2 per cent. For the eight western Oregon stands, the partial-cut option averaged about 3 per cent less, and the clearcut option ranged from 8 to 17 per cent less than holding. Pine stands of eastern Oregon showed similar trends; however, all options were within about 6 per cent of the hold option. Thus, using financial criteria typical of those used by private forest owners, we found that there was little short-term financial loss in choosing to thin toward even-age, partial cut toward uneven-age, or the hold approach in well-stocked stands.