CHAPTER XII 

 FUTURE VALUE OF FOREST PRODUCTS 



182. Factors Affecting Future Value. Since the value of 

 forest property is derived from income, an appraisal of the future 

 value of forest products must precede that of the property 

 itself and forms the basis for this appraisal. The examiner 

 must base his conclusions, first, on the character and present 

 condition of the property and its probable productiveness, and 

 second, upon the factors which will affect the value of the prod- 

 ucts secured. The elements demanding consideration are: 



The Stand, 



Growth in volume. 

 Improvement in quality of products. 

 Deterioration of standing timber. 

 Closeness of utilization. 



Price Levels. 



General price changes. 



Changes in prices for forest products. 



Effects of substitutes for wood. 



Future Operating Costs. 

 Local Factors. 



Future transportation facilities. 



Industries and markets. 



Future supply of timber. 



183. The Stand; Growth in Volume. The future growth 

 in volume of a stand of timber may be predicted for short periods 

 by measurements of past growth on average trees. For periods 

 exceeding a decade this method becomes unreliable by reason 

 of the progressive loss in numbers and altered rate of growth 

 of single trees which takes place in all stands as they increase 



