Evaluation of the profitability of poplar cultivation in Quebec

Abstract

The intensification of forest management through afforestation of high-yielding species such as hybrid poplar is considered a possible solution for re-establishing Quebec's forest industry. However, lack of financial data seems to limit the development of poplar cultivation. This paper is a financial analysis of poplar cultivation for private landowners in the province of Quebec and is based on a scale of actual cost and six different silvicultural scenarios. This study showed that poplar cultivation is profitable when subsidized. Using a sensitivity analysis, we identified the main factors defining a window of profitability for this type of intensive silviculture. The two main factors were the price of wood and government grants. The profitability of poplar farming is sensitive to three other secondary factors: cost of transportation, cost of harvesting, and timber yields. Consideration of these factors is crucial in establishing profitable hybrid poplar plantations.