May, 1925] 



FARM PRODUCTION IN CHESHIRE COUNTY 



23 



Fig. 5.* 



PRICES OF TIMBER STUMPAGE AND INDEX NUMBERS OF 

 WHOLESALE PRICES OF ALL COMMODITI ES 



1850-1920 



WHOLESALE PRICES OF 



ALL COMMODITIES 



1913=100 



INDEX 

 NUMBERS 



PRICES PER 



THOUSAND 



FEET 



DOLLARS 



1.0 

 9 

 8 



7 

 6 

 5 

 A- 

 3 

 2 

 I 



1850 I860 1870 1880 1890 1900 1910 1920 



* Stumpage prices from Forestry Department, University of New Hampshire. 

 Index of wholesale prices from U. S. Bureau of Labor reports. 



Table V. — Cost of producing ivhite pine with vioney at 5% interest, land at $5 per acre, 

 cost of planting $15 per acre, and tax rate at 2\%. 



Taxes and interest on timber and 

 land accrued to end of rotation 



Cost of planting carried to end of 

 rotation 



Total expenses 



Stumpage value at $12 per M. . . . 



Net profits of plantations 



Net profits of natural reproduc- 

 tions (less accrued cost of plant- 

 ing) 



Rotations. 



20 years. 



$16.. 57 



39 . 80 



56.37 



37.00 



-19.37 



20.43 



30 years. 



$49.09 



64.83 

 113.92 

 150.00 



36.08 



100.91 



40 years. 



$156.73 



. 105.60 

 262 . 33 

 394.00 

 131.67 



237.27 



50 years. 



$403 . 83 



172.01 



575.84 



558.00 



-17.84 



154.17 



60 years. 



$8,54.10 



280.19 

 1,134.29 



638.00 

 -496.29 



-216.10 



Net profits on this basis reach a maximum of $131.67 for plantations, 

 and $237.27 for natural growths, at the end of the fortieth year with the 

 given rate of taxes and stumpage vakie of timber. Taxes and interest 

 make up more than one-hah" of the expenses, and as the national timber 

 situation becomes more acute we can expect this cost to be cut down a 

 good deal through reduced taxes. The Walker Bill, recently passed by 

 the New Hampshire Legislatiu'e, exempting a maximum of 50 acres of 

 timber, if classified, until it contains 25,000 board feet of lumber, indi- 

 cates the tendency in taxation. This would have increased the net 

 profits on the above estimate approximately $58, making a total of 

 $189.67 for plantations and $296.27 for natural reproduction, which is 

 equal to a return of 33.6 per cent and 49.5 per cent respectively, com- 

 pounded annually on the value of the land after the expenses of operation 

 have been deducted. 



