226 PRIVATE FORESTRY 



1. Taxation. The burdens of annual taxation have been adduced 

 as a deterrent to the practice of forestry. As it requires many years 

 for a tree crop to mature, the cumulative effects of the tax burden 

 may operate adversely when a woodland owner contemplates a defi- 

 nite plan of management. Many states have enacted measures to 

 relieve this burden. Deferred or low current taxes are paid until the 

 crop is ready for cutting and then a yield tax is applied. Various 

 forms of yield or crop tax have been applied with some degree of 

 success. Indiana, Louisiana, Wisconsin, and Oregon have successful 

 taxation laws in effect. In some states there is a tax on the cutting 

 in order to pay for the conservation measures in effect. In many 

 states, as in New York, advantage has not been taken of the yield 

 tax principle as applied to plantations and young growth. 



2. Long-Time Investment. The cumulative effect of interest 

 charges, protection expenses, depreciation of improvements and other 

 structures may be so large and burdensome that it may be difficult 

 to hold forest properties over extended periods of time. This is an 

 excellent argument in favor of state and federal ownership as con- 

 trasted with private ownership. Although the people pay taxes for 

 the maintenance of our state and federal forests instead of the indi- 

 viduals assuming this responsibility, many lumber companies as in 

 the Northwest have been forced to liquidate their timber investments 

 because the carrying charges for interest as well as taxation and other 

 overhead expenses have been too burdensome to carry, in spite of 

 the purchase of these holdings at a relatively low stumpage value. 



3. Hazards of Fire or Pest Injury. In some regions, the danger 

 of loss by fire is exceedingly serious and the costs of protection are 

 very burdensome. In others, insect and fungus attacks have forced 

 immediate cutting and liquidation. The hazards from these enemies 

 of the forests have been a serious deterrent to the practice of forestry. 

 It is possible that a system of forest fire insurance may be devised 

 and that protective methods and organizations may be so improved 

 as to minimize these damages and make the premium on insurance 

 rates low enough to be attractive to private owners. 



4. Low Prices for Forest Products. Many farmers and other 

 forest owners have not received sufficiently high prices to justify any 

 capital expenditure for forest improvements and maintenance such as 

 planting, fire lines, and improvement cuttings. The market prices 

 received for forest products are probably the greatest single factor in 

 determining the intensity of forest practices in this country. High 

 prices for forest products will greatly encourage the practice of for- 



