elements of cost in growing timber. The assumptions made are thought to 

 be fair and to approximate the usual conditions under which the various 

 species must be grown. With a right method of computation established, 

 those who have need to do so can supply the necessary factors and determine 

 the cost of production for particular cases. With these considerations in 

 mind,, the following discussion is given: 



ELEMENTS OF COST. 



There are five main elements of cost in the growing of timber. They 

 are: (1) The value of the land; (2) the stocking 1 of it with young trees; 

 (3) the administration of the operation and the protection of the growing 

 timber; (4) the taxes; (5) the rate of interest. 



The profit or loss at the end of a given period will be determined by 

 the relation between the combined amounts of these investments at the 

 proper rate of interest and the value of the stumpage of the resulting stand 

 of timber at prices then obtainable ; or,, the total amount of the investments 

 at compound interest, divided by the total yield, will give the absolute cost 

 of production per unit of yield. 



In Tables 1 to 6 are brought together the best figures and available 

 estimates upon six important species white pine, loblolly pine, longleaf 

 pine, red oak, yellow poplar and Douglas fir. The following basic 

 assumptions are made: 



LAND VALUE AND STOCKING. 



The land as such, regardless of what forest growth there may be on it, 

 and assumed to be unfit for ordinary agricultural crops, is valued uniformly 

 at $3 per acre. 



Assuming that the land must be fully planted with young trees, a 

 charge of $7 per acre is allowed. The results obtained by the State of 

 New York and other extensive planters indicate that this amount should 

 be sufficient in planting operations of considerable magnitude. Of course, 

 if cut-over land is restocking naturally with young trees, it is worth more 

 than bare land, but the increased cost of the land should be approximately 

 equal to the amount that would have to be spent for planting. Planting- 

 should be unnecessary in many cases, since it is often possible to obtain 

 natural reproduction at low cost, if proper cutting methods are used. 

 Whether we assume a value of $3 per acre for bare land and a cost of 

 planting of $7 yer acre, or allow $10 .per acre for land naturally stocked 

 with young trees, the initial investment remains the same. For these 

 reasons the cost of land and stocking are summarized together in the tables. 



Many will probably think that the charges for land value and stocking 

 are placed too low, and this is probably true in certain instances. It is 

 deemed better, however, to calculate the cost of growing timber with the 

 lowest possible original investment, than to run into figures which, while 

 entirely true for some conditions, will yet seem preposterous to the unin- 

 formed. There is also some merit in placing the fixed charges for all 

 species at the same amount. This brings out more clearly the differences 

 in final costs due to growth and yield. 



ADMINISTRATION AND PROTECTION. 



The cost of administration and protection will vary greatly with local 

 conditions and the size of the operation. In these calculations, they are 



