COMPARISON OF FOREST WITH AGRICULTURAL VALUES 237 



lation into such appraisals, and when this is done, the present 

 values thus found are no longer based on present but on future 

 conditions. It is this element, and not the discounting of future 

 income to the present, which would unfairly alter the basis of 

 appraisal in favor of forest values. A parallel case would be 

 found were it estimated that prices for farm crops would in- 

 crease and that the value of land at present should be based on 

 an appraisal of this future increase in annual income. 



Future growth in volume is a justifiable assumption, as is 

 also an improvement in quality of timber and of unit price based 

 on this quality, to conform to the higher prices now received for 

 similar grades ( 183, 184). But the discounting of future in- 

 creases in the general price level for timber is as little justified 

 in the case of valuation for comparison with agriculture as it is 

 in valuing damages to young timber. In either case, present 

 values must be based on present prices, and future increases may 

 be used only by the owner in computing possible or speculative 

 profits. 



248. Results, when Values of Bare Land are Compared. 

 From the above discussion it is assumed that a true comparison 

 of forest with agricultural values is based on a computation or 

 appraisal of the expectation or present capital value of the 

 property for each use, the forest values present in the form of 

 timber and land being compared with the value of stump land 

 for agriculture. The highest value for both purposes will always 

 be found on the richest agricultural soils. But it will seldom 

 if ever be true that the forest value of bare soil will exceed its 

 agricultural value if the soil is fairly adapted to crop production. 

 Only upon the poorer or non-agricultural soils will land itself, 

 even at a low forest value, be worth more for wood crops than 

 for agriculture. 



249. Results, when Full Value of Property is used in 

 Comparison. With the growth of the timber, however, a 

 corresponding increase takes place in the forest values of the 

 property or "land," until at some point during this growth the 

 actual present value of the timber and land exceeds the agri- 

 cultural values. At any time previous to this, it is justifiable 



