Graph 3. Land expectation values, site index 60, thinned to basal area 



of 100 square feet per acre. 



^ 200p 



100 - 



{2 -100 



3 

 -I 



O 



i 



u 



u 

 a. 



X 



UJ 



-I 



^200p 



100 



■100 



i 200r 



Maximum Rote 

 of Return 4.2% 



100 



J \ \ 1 



■100 



INTEREST RATE 



4 5 YEAR ROTATION 



Maximum Rate 

 of Return 5.4% 



4 200 



00- 



-100 



INTEREST RATE 



Maximum Rate 

 of Return 5.2% 



8 10 



55 YEAR ROTATION 



10 



65 YEAR ROTATION 



70 YEAR ROTATION 



The stand on site index 65 showed a maximum rate of return of 

 6.7 percent at a rotation of 45 years. Longer rotations resuhed in a 

 decreasing rate of return. Because data were not available for shorter 

 rotations it is not possible to determine whether a higher rate of re- 

 turn could be realized from a shorter rotation. 



Conclusions 



Land prices are escalating rapidly in the Northeast. Some factors 

 which contribute are clearly non-forestry but once land is acquired 



10 



