than 2 feet in diameter, and a yield of 70,000 feet per acre, the cost is 

 $11.46 per thousand for Case 1, and $10.74 per thousand for Case 2. 



Table 6. Douglas fir in western, Oregon and Washington. 

 CASE 1. 



Land and stocking, $10 per acre ; administration and protection, 5 cents per acre ; 

 taxes, 10 cents per acre up to 40 years ; thereafter 1 percent actual value, with reassessment 

 every ten years ; interest 4 percent. 



Present 



Land Administra- 



AGE . and tion and 



YRS. . stocking, protection. Taxes. 



40 $ 45.01 $4.75 $ 9.50 



7.63 17.30 

 11.90 31:21 

 18.21 54.29 

 J7.56 91.22 

 41.40 149.06 

 61.88 238.26 



50 68.07 



60 102.20 



70.... 152.72 



80 227.50 



90 338.19 



100 502.05 



CASE 2. 



No annual tax on land or timber ; final tax 25 percent of yield. 

 Case 1. 



Other factors as in 



AGE 

 YRS. 



Land Administra- 



and tion and 

 stocking, protection. Taxes. 



40 $ 45.01 $ 4.75 One 



50 68.07 7.63 quar- 



60 102.20 11.90 ter 



70 152.72 18.21 of 



80 227.50 27.56 yield. 



90 338.19 41.40 



100 . 502.05 61.88 



Total 



cost.* 



$ 49.76 



75.70 



114.10 



170.93 



255.06 



379.59 



563.93 



Net 



Size, yield Cost 



in. M.ft.t perM. 



18.0 $ 2.76 



26.3 2.88 



32.2 3.54 



37.5 4.56 



42.7 5.97 



48.0 7.91 



52.5 10.74 



10.6 

 13.7 

 16.2 

 18.4 

 20.5 

 22.5 

 24.3 



Present 

 stumpage 

 price 

 per M. 

 $1.00 

 1.25 

 1.50 

 1.75 

 2.00 

 2.25 

 2.50 



* Excluding taxes. 



t Three-fourths of total yield, one-fourth deducted in lieu of taxes. 



Because of the rapid growth and heavy yield, there is a possibility 

 of getting more than 4 percent from a Douglas fir investment. At 5 per- 

 cent, the cost of growing 50-year-old timber is $4.15 per thousand under 

 Case 1, and $4.36 per thousand under Case 2. At 60 years, it is $5.70 per 

 thousand for Case 1, and $5.86 per thousand for Case 2. With a 6 percent 

 interest rate, the cost of production at 50 years is $6.49 per thousand for 

 Case 1, and $6.70 per thousand for Case 2. At 60 years it is $9.67 and 

 $9.88 per thousand, respectively. 



All things considered, the outlook for Douglas fir is distinctly encour- 

 aging. The price of stumpage is certain to advance, and an increase of 

 only two or three dollars per thousand will bring it to reproduction prices 

 for ages up to 70 or 80 years. Such increases and far greater ones will 

 likely take' place before the timber can be grown. Cut-over Douglas fir 

 land containing a sufficient quantity of young growth is evidently an 

 excellent investment at $10 per acre. On the large areas of fir forests 

 which are still . intact, natural reproduction can be obtained at less than 

 planting cost and profits increased accordingly. 



PEOPORTION OF DIFFERENT ELEMENTS IN TOTAL COST. 



In order to see more clearly the influence of the various factors in the 

 cost of growing timber, the percentage of the total cost contributed by 



ii 



