236 FINANCIAL ASPECT OF AFFORESTATION 



Now it will be quite correct, in principle, to state 

 that the value of the average annual increment is equal to 

 the gross annual revenue which is yielded on this average 

 capital charge per acre of 100. 



E.g., the average annual production per acre is 63 cubic 

 feet, that is (say) 



50* cub. ft., at 7d. = i 9 2, 

 13 cub. ft., at 3^d. = o 3 10 



i 13 o 



* It would not be correct to value the 63 cubic feet at yd., as a portion of 

 this average annual increment is small "stuff" and therefore worth less per 

 foot. 



Hence, the gross return equals 1, 135. and the net 

 return is obtained by deducting the outgoings from the 

 gross return. 



Now, the minimum outgoings per acre on a normally 

 stocked area, will include the 2s. over and above any sum 

 receivable as a sporting rent, as already described, and, also, 

 an average sum per acre for replanting an area equal to that 

 annually cut ; and also an average sum per acre to defray 

 the cost of felling the final crop. 1 



Thus, the annual outgoings will be about as follows : 



Per acre. 



Ordinary outgoings, as mentioned ... .,020 

 Proportionate charge for replanting . . . o I 6 * 

 for felling . . . 021 



Total net outgoings . . o 5 7 



Hence, the actual net return per acre equals . 



Less 



Net return per acre . . ... ;i 7 5 



* The cost of replanting the land just cleared, and establishing the crop, is 

 placed at 6 an acre. 



1 This is necessary, as, in arriving at the gross returns, the timber 

 has been valued down to 3 inches diameter ; and the faggots, etc., made 

 from any smaller "stuff" will usually only pay for the making up. 



