THE COST OF GKOWING TIMBER IN THE PACIFIC NORTH- 

 WEST, AS RELATED TO THE INTEREST RATES 

 AVAILABLE TO VARIOUS FOREST OWNERS 

 BURT P. KIRKLAND, Associate Professor of Forestry 



The cost per acre of growing timber anywhere depends on five main 

 factors, viz. (1) The value of the land, (2) The cost of stocking it with 

 young trees, (3) The administration of the operation and protection of 

 the young timber, (4) The taxes, (5) The rate of interest. The cost per 

 thousand feet depends in addition upon the productivity of the land in- 

 volved. For the purpose of this discussion, however, the statement may 

 best be put in another way, namely, that the costs per acre are as follows : 

 (1) Interest on the value of the land, (2) The cost of stocking it with 

 young trees, (3) Interest on this amount from time of stocking to 

 maturity, (4) The annual expenses for administration and protection, 

 (5) Interest on each annual expense from time of expenditure to time of 

 maturity of the timber, (6) The annual taxes, (7) Interest on each 

 annual tax from time of payment to maturity of the timber. The total of 

 these costs per acre, divided by the average product per acre gives the cost 

 of producing 1,000 board feet of timber. 



The amounts for some of these items vary with natural conditions, 

 and of others, with the ownership of the land. Thus state or federal 

 ownership modifies the element of taxes and changes the rate of interest. 

 Private ownership might facilitate administration in some ways, though 

 it can hardly be expected to reduce the cost, owing to the smaller areas 

 administered. The amounts of the various items under various conditions 

 and forms of ownership are discussed below. 



Interest on the Land Value 



The cost of cutover lands of supposed agricultural value, or of a 

 nature such that the seller can convince the inexperienced buyer that they 

 have agricultural value would probably run from $10.00 to $50.00 per acre 

 in Washington, where the values are not influenced by proximity to centers 

 of population or other advantages of a similar nature. Hillsides, appear- 

 ing even to the unpracticed eye too steep for agriculture, may be pur 

 chased for $3.00 to $5.00 per acre. The higher values first mentioned 

 are undoubtedly beyond any present use value of the land for agriculture, 

 but the optimism of the West can be depended upon to maintain them, 

 because the buyer of land has sanguine ideas as to the income to be de- 

 rived. If the land is to be used for forestry we must concede that current 

 values must be met. Land which is held at over $10.00 per acre should 

 have agricultural value, and for the present at least, should be considered in 

 that class and no attempt made to use it for forestry. The writer, therefore, 

 believes that in Washington fair values for forest soil would be $10.00 per 

 acre for Quality I, $5.00 for Quality II, and $2.00 for Quality III, re- 

 ferring to three quality yield tables for Douglas fir prepared by the U. S. 

 Forest Service.* These tables classify quality of soil for forest purposes 

 according to its actual productivity. In growing timber it must be re- 

 membered that the soil is not used up by the growth of the timber. The 



"These yield tables, prepared by E. J. Hanzlik of the U. S. Forest Service are 

 as yet only In manuscript form. (See page 5.) 



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