22 X. H. Agk. Experiment Station [Bulletin 318 



siderably larger than the minimum actually in operation. As a result, 

 we find mills -^dth capacities much above the minimum dra\\-ing their 

 raw materials from relatively large areas and relying upon low process- 

 ing costs and high-quality products to offset increased trucking expense. 



The third factor to be considered is that of transporting the processed 

 or semi-processed material from the mill to the consumer, whether he be 

 industrial, retail, or otherwise. These transportation costs have been 

 estimated at something like two-thirds of those of hauling an equivalent 

 amount in the fomi of round logs and this relationship remains constant 

 regardless of length of haul. However, as distance increases, the absolute 

 difference between the two sets of costs rises, making it increasingly prof- 

 itable to transport the product in the form of lumber. 



When the total of these three costs is at a minimum, then the most 

 efficient setup will be reached. 



N '•* 



Courtesy of White Mountain National Forest. 



A mill, located near the area, which handles specialty products. 



Such an arrangement would have plants distributed throughout the 

 area with regard to sources of supply and markets for finished products. 

 Two or more plants processing similar products would not be located 

 side by side. In this respect, present stationary mills appear well dis- 

 tributed. There is, however, much inefficiency in the area in assembling 

 sawlogs from fanns. This is not because of excessive trucking rates, but 

 because of selling to other than the nearest mill. 



To the extent that some of the mills are poorly equipped and ineffi- 

 ciently set up. optimum jjrncessing conditions are not attained. 



Income Possibilities from This Woodland Area 



This study is primarily concerned with fanners' income from wood- 

 land. If by some change in the market organization or by other meas- 

 ures this income can be increased, that change would appear justified. 

 Several complications in the method of pricing forest products enter when 

 an attempt is made to measure farm income from this source. First, 



