THE VALUATION OF FORESTS 87 



as depending solely on the net future income from other uses, 

 such as agriculture or grazing. Since these are enterprises not 

 directly connected with forestry, it may be technically assumed 

 that the forest owner sells the land, and the sale value received 

 completes his income and terminates the enterprise. 



The total present value of forest property based on the 

 income from destructive lumbering is determined as follows: 



F a = sale value of forest property, including both land and 



timber: 



Y = yield or net stumpage value of timber in final cutting. 

 Tp, T q) T r = yield or value of thinnings or timber removed 



before final cutting. 



S s = sale value of land when finally cleared of standing timber. 

 e = annual expenses. 

 E = capital value of annual expenses. 

 a = present year, or the year a dating from the origin of the 



stand. 

 n = year in which final cutting is made, dating from the origin 



of the stand. 



The period of discount will then be n a years. 



In the year of sale, and previous to its consummation, a and 

 n coincide. The value of the property for immediate sale is 

 then 



F. = Y + S.. (B) 



When the year of valuation a precedes n, the value is as 

 follows : 



Value of Y for year a 



Value of T p , T q , T r for year a 



Value of S g for year a 



S s 



