94 FOREST VALUATION 



in a savings bank from which the accumulated interest is with- 

 drawn, say every 10 years. For land which is bare of trees but 

 in condition to be planted at once, the period intervening to 

 reduce the value of this prospective income coincides with that 

 for growth of the crop. But should the land first require drain- 

 ing, or other preparation as in the case of peat lands or shifting 

 sands, a still further shrinkage of prospective value occurs, be- 

 cause of the lengthened time and extra expense intervening. 



This discounted value of future income, computed for a date 

 just previous to the origin of an even-aged stand of timber, 

 gives the value of forest land bare of trees. 



This value is obtained from Formula C, by omitting the value 

 of the timber Y. Let S v = expectation value of forest land. 



(E) 



, or - , 



S,, the expectation or capital value of forest land bare of trees, 

 may be likened to the value of bare land suitable for farm crops 

 or orchards. In the case of farm land, it may happen that the 

 sale value of one annual crop will equal or exceed the value of 

 the land, and farms are usually sold subject to crop removal 

 or in the winter. With orchards, the value of the bearing trees 

 greatly enhances that of the bare soil. Even a young orchard 

 increases land values. In the latter case, it is of small moment 

 whether value is separated into the value of the land and that 

 of the fruit trees, for both are sold together. With forest trees, 

 the relation between land values and ultimate income is exactly 

 the same, but the period covered by the growth of the stand is 

 so long that one is apt to lose sight of the fact that this so- 

 called value of land is merely the discounted value of the future 

 crops of timber. 



This soil value S v represents the value of all future income 

 dating from a point just subsequent to the complete removal of 



