AFFORESTATION OF BARREN LAND. Q 



The total value of the timber should therefore be . ^100,000 

 On the debit side, we must set — 



(i) Loss of rent for the land (which, in this 

 instance, we will calculate at 4 per cent.): 

 80 years' rent of j£-j^ at 4 per cent. = ^41,344 

 (2) Repayment of Loan — ,^690 — 



20 years at 4 per cent. =^20,546 

 Compound Interest on 

 this sum for 20 years = 24,470 



45,016 



86,360 



Balance credit /^i 3,640 



A point which has not been mentioned, but which has not 

 been lost sight of, is the question of tending and management, 

 and its expense. What it will actually cost is difficult to say, 

 but, if taken in conjunction with other forestry operations, 

 experience points to about yd. per acre per annum as a fair 

 figure to allow over the whole rotation. 



This, of course, if capitalised would add a large sum, and 

 would practically wipe out even the small profit shown; but I 

 must point out, on the other hand, that no credit has been taken 

 for timber taken out before the realisation of the final crop in 

 the form of thinnings, and these should more than balance the 

 expenditure. No doubt the first thinnings, 20 years and under, 

 will probably be done at a loss, but between 20 and 40 years, 

 and more especially after that time, the thinnings will be of 

 considerable value, and should more than balance the loss in 

 the earlier years. Jt is almost impossible to put this into figures, 

 but I think most practical foresters will support me in what I 

 have stated. 



A further point which must be considered is. What is going 

 to happen in the case of failure of the crop? 



The crop may fail almost immediately, or at some later date, 

 and I have put down two propositions and suggestions to meet 

 these contingencies. 



Suppose the crop fails and is manifestly not going to make a 

 satisfactory forest, and this is realised within the first ten years. 

 The cause of failure in this case may fairly be laid at the door 

 of the Government expert, as it was presumed that his advice was 

 to be followed as to the choice of species, method of formation 



