100 years, with timber averaging only a little more than 14 inches in 

 diameter, which means a range of from 10 inches to 20 inches, the cost is 

 $22.28 per thousand; and at 120 years, with timber averaging 16.4 inches 

 in diameter the cost is $42.23 per thousand. While taxes pile up heavily, 

 they are far from being the most important item in the investment. Most 

 of the cost is due to the interest upon the land and growing stock. At 70 

 years this amounts to more than four times as much as the taxes, and at 

 120 years it is over three times as much. The cost for administration and 

 protection ranges from $1.07 per thousand at 70 years to $3.61 per 

 thousand at 120 years. 



With the only tax one of 25 percent of the yield, the cost is slightly 

 greater throughout than under Case 1. This is because the stumpage price 

 is low and the yield small. With higher stumpage prices and yields, the 

 tax on yield is more favorable to the owner than is the general property 

 tax. 



Table 3. Longleaf Pine in the South. 

 CASE 1. 



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

 taxes, 10 cents per acre up to 70 years, thereafter 1 percent actual value, with reassess- 

 ment every ten years ; interest, 4 percent. 



Present 



Lfand Administra- stumpage 



Aoa and tion and Total Size, field Cost price 



YES. stocking, protection. Taxes. cost. in. M.ft. per M. perM. 



70 $ 152.72 $18.21 $36.43 $ 207.36 9.9 17 $12.20 $2.00 



80 227.50 27.56 58.36 313.42 11.4 23 13.63 2.50 



90 338.19 41.40 93.64 473.23 12.9 28 16.90 3.00 



100 502.05 61.88 149.03 712.96 14.2 32 22.28 3.50 



110 ,744.60 92.20 234.37 1,071.17 15.3 35 30.60 4.00 



120 1,103.63 137.08 364.04 1,604.75 16.4 38 42.23 4.50 



CASE 2. 



in Case 1. 



No annual tax on land or timber ; final tax, 25 percent of yield. Other factors as 



AGE 



YKS. 

 70., 

 80.. 

 90.. 



100. . 



110.. 



Land Administra- 



and tion and 

 stocking, protection. 



$ 152.72 $ 18.21 



227.50 27.56 



338.19 41.40 



502.05 61.88 



744.60 92.20 



120 ; 1,103.63 137.08 



Taxes. 



One 



quar- 

 ter 

 of 



yield 



Total 

 cost.* 



\ 170.93 

 255.06 

 379.59 

 563.93 

 836.80 



1,240.71 



Present 



Net stumpage 



Size, yield^ Cost price 

 M. ft. per M. per M. 

 12.7 $13.46 $ 2.00 

 14.83 

 18.08 

 23.50 

 31.82 

 43.53 



in. 

 9.9 

 11.4 

 12.9 

 14.2 

 15.3 

 16.4 



17.2 

 21.0 

 24.0 

 26.3 

 28.5 



2.50 

 3.00 

 3.50 

 4.00 

 4.50 



* Excluding taxes. 



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



The conclusion to be drawn from the longleaf pine table is that, 

 under the conditions specified, it can not be grown profitably. The stump- 

 age costs are higher than it is likely that stumpage prices will go. It 

 may be that 100 years hence longleaf pine stumpage averaging 14 inches 

 in diameter will sell for $22 per thousand,. but the chance that it will do so 

 is not great enough to lead capital to purchase bare land and plant it to 

 longleaf pine trees. 



If we are to have longleaf pine permanently we must evidently favor 

 it. Since the greatest element of cost is the land and stocking, this item 

 should be decreased if possible. If the investor can get longleaf pine land 

 with sufficient young growth upon it eventually to produce a full merchant- 



11 



