2i6 TIMBER VALUATION 



This then is the sort of income which is meant when net returns 

 from forest land are referred to. All costs are included and 

 interest figured on them from the time the trees are an inch high 

 to their maturity. Furthermore, due allowance is made for pos- 

 sible loss from fire, insects, and fungi, and such items as are 

 covered by insurance and depreciation charges, in the case of 

 an ofl&ce building. It seems reasonable, therefore, to use a low 

 interest rate and 3 per cent has been chosen for the calculations 

 given below. 



The cost of the land has been set at $10 per acre. Only such 

 soils should be devoted to tree crops as are unfit for tillage. This 

 means steep, rocky or sandy land not good enough to plow. 

 Hence a low figure is justifiable. Even in England with its ready 

 markets and dense population the Forestry Sub-committee of 

 the Reconstruction Committee estimated in 19 18 that land could 

 be bought for reforestation purposes for an average of Si 5 per 

 acre. 



For securing regeneration, whether natural or artificial, the 

 cost is estimated at $10 per acre. This is somewhat low for 

 planting on steep sites liable to wash, but high for natural 

 regeneration. As an average it compares very favorably with 

 the English estimate of $17 per acre " for planting, fencing, drain- 

 ing, beating up, etc.," where no natural regeneration could be 

 expected. 



This same report gives figures for the annual cost of protection 

 and administration which are useful as a guide. For $1.50 per 

 acre per annum it is expected that the protective and administra- 

 tive officers may be paid and the necessary roads and buildings 

 constructed and maintained. Hence, a figure of $1 per acre for 

 protection, administration and taxes seems conservative for 

 American conditions. 



The total cost of gro\Aing timber per acre summing up all the 

 items enumerated above is as follows: 



