literally no trend through 1967 (Graph 2). The expectation is that 

 stumpage prices will rise at a rate no less than that of other major 

 indexes. 



Prices reflect size differences as well as time differences. The price 

 for trees on a 55-year rotation (55 years from 1967) will be lower than 

 the price for trees on a 70-year rotation (70 years from 1967). This is 

 the result of the increase in prices over time and the increase in tree 

 size which adds to the value of the sawlog (5) . 



In any given year sawlogs may be cut either as a harvest operation 

 or as a thinning operation. Sawlogs cut for thinning purposes will be 

 smaller and of lesser quality and come from trees of lesser diameter 

 and height than sawlogs cut as a harvest. The trees untouched during 

 thinning operations are potential harvest trees, chosen for their greater 

 diameter and height growth. Therefore, a harvest cut will return a 

 higher price per M.b.f. than will a thinning cut. Thus, sawlog prices 

 for thinning and for harvest operations in a given year should reflect 

 the size differential — prices for thinning operation sawlogs being lower 

 than prices for harvest cut sawlogs. Therefore, a second schedule of 

 prices was developed to reflect the size differential between trees in har- 

 vest and thinning cuts. The prices for sawlogs cut under a thinning 

 operation were projected on the same trend as the harvest prices. By 

 using the calculated 1966 sawlog price for thinning operations of $9.42 

 and adding (.579) (X years) in 31 years, the price would equal $9.42 

 + (.579) (31) = $27.37 per M.b.f. for the year 1997. 



Pulpwood Pricing 



The stumpage price of pulpwood is assumed to increase in the 

 future at the compound rate of 2.25 percent a year. The price for 1966 

 was taken at $1.96 (5). Thvis in 21 years, or 1987, the price would be 

 $3.12. After 66 years, or the year 2032, the price of pulp was frozen 

 at the 66th year level, or $8.49. The schedule of pulp prices is shown 

 in Table 4. 



Analysis of stands for pulpwood production only is not included 

 since such stands would not require thinning schedules nor long ro- 



Table 4. Projected Pulpwood 

 Prices for White Pine 



Years Price 



from 1966 per Cord 



21 3.12 



26 3.49 



31 3.90 



36 4.36 



41 4.87 



46 5.44 



.56 6.80 



66 8.49 



76 8.49 



