THE MOST PEOFITABLE ROTATION 



9 



at the end of 100 years the difference is nearly 62, 

 and so on. 



Thus it will be evident that it is most important to 

 bear the above in mind when considering any scheme 

 for afforestation ; for otherwise, it is quite possible that a 

 small loss of a few shillings in a rental might be con- 

 sidered as of little moment, whereas, in reality, a big 

 capital loss would be sustained by the end of the 

 rotation. 



And so, also, it should be remembered that there 

 can be no real profit representing a rental for the land 

 until the value of a final crop, " plus " the accumulated 

 value of any "thinnings," exceeds the accumulated 

 value of all annual outgoings, and also the original 

 cost of planting the land, along with the accumu- 

 lated interest thereon. Now, in this connection, if the 

 annual outgoings in respect of any given area were 

 4s. per acre, and if the cost of planting, including 

 fencing and replacing "deaths," etc., were 5 per 

 acre, there would be (at 4 per cent, interest) a debt 

 per acre of 66 at the end of 50 years ; and of 

 184 at the end of 75 years ; and of 500 at the end of 

 100 years 



However, it must not be forgotten that the accumu- 

 lated value of any "thinnings," especially after about 



the 50th year, is often very considerable, and will very 

 much reduce the debit side of any account. 



The most profitable Rotation. Generally 

 speaking, these land rentals show which is the most 

 profitable rotation under which crops can be grown. 

 However, in many cases the rotation may be somewhat 

 longer than that specified, 1 as the various land rentals 

 are given from period to period, and the actual date at 

 which any crop might be most profitably realised may be 

 somewhere between two given periods. In this connec- 

 tion, the column showing the percentage increase in 

 value will be found a useful guide. 



As will be observed, the rate of interest at which 

 calculations are made, and the price per foot at which 

 the timber at various ages is saleable, will largely 

 determine which is the most profitable rotation. 



From a purely financial point of view, it will often 

 be preferable to sell, at a low price per cubic foot, a 

 young, immature crop of timber which consists perhaps 

 mostly of sapwood, rather than to wait until the timber 

 is mature, even though double the price per foot could 

 then be obtained by the sale thereof. 



1 The highest " land rentals " are printed in thick type. 



