﻿26 



BULLETIN 11, TJ. S. DEPARTMENT OF AGRICULTURE. 



Table 24. — Net profits per acre and corresponding compound interest rates from loblolly 

 pine, for different initial investments, rotations, and distances from market. 



-'Quality III.— FOR TREES 5 INCHES AND OVER IN DIAMETER BREASTHIGH, LUMBER 



CUT AND SOLD UNGRADED. 





Initial investment. 



Cost 2 of ad- 

 ministration 

 and taxes at 

 6 per cent 

 compound 

 interest. 



Net profit 3 and corresponding compound interest rate * on 

 total initial investment at different distances from market 

 or shipping point. 



Rota- 

 tion. 



Land. 



Forma- 

 tion. 1 



Total. 



1 mile. 



4 miles. 



8 miles. 



16 miles. 





Net 

 profit. 



Inter- 

 est 

 rate. 



Net 

 profit. 



Inter- 

 est 

 rate. 



Net 

 profit. 



Inter- 

 est 

 rate. 



Net 

 profit. 



Inter- 

 est 

 rate. 



Years. 



' $5 

 . 10 



5 

 , 10 



5 

 10 



{ $o 



1 3 



1 5 



I 7 



f ° 

 I 3 



1 5 



I 7 



f o 



J 3 



1 5 



I 7 



f 

 3 



1 5 



I 7 



f 

 J 3 

 1 5 

 I 7 



f ° 

 J 3 

 1 5 



I 7 



f ° 

 3 



$5 

 8 

 10 

 12 



10 

 13 

 15 



17 



5 

 8 

 10 

 12 



10 

 13 

 15 

 17 



5 

 8 

 10 

 12 



10 

 13 

 15 

 17 



5 

 8 

 10 

 12 



10 

 13 

 15 



17 



1 $2.21 

 I 3.31 

 1 4.74 

 1 7.12 

 I 9.29 

 1 13.93 

 1 17.42 

 | 26. 13 



f $9.34 

 1 6.34 

 1 4.34 

 t 2.34 



f 8.24 

 J 5.24 

 1 3.24 

 I 1.24 



f 25. 51 

 1 22.51 

 1 20.51 

 I 18.51 



f 23. 13 

 1 20.13 

 I 18.13 

 I 16.13 



f 45. 51 

 I 42.51 

 1 40.51 

 I 38.51 



f 40.87 

 I 37.87 

 1 35.87 

 ( 33.87 



f 69.68 

 1 66.68 

 1 64.68 

 I 62.68 



f 60.97 

 1 57.97 

 1 55.97 

 I 53.97 



Per ct. 



5.41 



2.96 



1.82 



.90 



3.05 



1.71 



.98 



$7.66 



4.66 



2.66 



.66 



6.56 

 3.56 

 1.56 



Per ct. 

 4.75 

 2.32 

 1.19 



.27 



2.55 



1.22 



.50 



$3.74 

 .74 



Per ct. 

 2.83 



.45 





Per ct. 

























20 



2.64 



1.18 



































6.22 

 4.56 

 3.79 

 3.16 



4.07 

 3.17 

 2.68 

 2.25 



5.95 

 4.71 

 4.13 

 3.66 



4.15 

 3.47 

 3.10 



2.78 



5.56 

 4.57 

 4.10 

 3.72 



4.00 

 3.45 

 3.16 

 2.90 



21.91 

 18.91 

 16.91 

 14.91 



19.53 

 16.53 

 14. 53 

 12.53 



39.87 

 36.87 

 34.87 

 32.87 



35.23 

 32. 23 

 30.23 

 28.23 



61.64 

 58.64 

 56.64 

 54.64 



52.93 

 49. 93 

 47.93 

 45.93 



5.77 

 4.13 

 3.35 

 2.73 



3.68 

 2.77 

 2.28 

 1.86 



5.64 

 4.41 

 3.82 

 3.35 



3.84 

 3.17 

 2.80 

 2.48 



5.32 

 4.33 

 3.87 

 3.49 



3.75 

 3.20 

 2.91 



2.65 



13.51 

 10.51 

 8.51 

 6.51 



11.13 

 8.13 

 6.13 

 4.13 



26.71 

 23. 71 

 21.71 

 19.71 



22.07 

 19.07 

 17.07 

 15.07 



42.88 

 39.88 

 37.88 

 35.88 



34.17 

 31.17 



29.17 

 27.17 



4.46 

 2.84 

 2.07 

 1.46 



2.53 



1.63 



1.15 



.73 



.4.73 

 3.50 

 2.93 

 2.46 



2.96 

 2.28 

 1.92 

 1.60 



4.62 

 3.64 

 3.18 



2.81 



3.02 

 2.48 

 2.18 

 1.93 



$0.51 



0.32 















30 



























2.11 



.88 















40 



























2.68 



.86 





5 1 



7 













50 



10 



{ o 



3 

 1 5 



I 7 



































1 Cost of establishing a loblolly pine stand, either by natural or artificial reproduction. 



2 Three cents per acre annually for administration (including fire protection), and 6 mills on the dollar 

 (full valuation) annually for taxes, which is above present average tax for the region. 



3 Stumpage value as given in Table 14, less original cost of formation and total cost of administration and 

 taxes. Where no net profit is shown, a loss is indicated. 



4 Calculated by formula p=100 f -«/ "*" —1 ) , where p=compoundinterest rate, n=number of years 



or rotation, »S'=stumpage value at n years, X=cost of land, .F=cost of formation, and A =cost of adminis- 

 tration and taxes in n years at 6 per cent compound interest. 



The preceding tables indicate under what conditions of quality of 

 soil, cost of land, cost of establishing crop, and distance from market 

 forest management of loblolly pine will be profitable or advisable as a 

 business proposition. For instance, Table 22 indicates that on 1 acre 

 of Quality I soil, 1 mile from the railroad, where there is no cost 

 for establishing a crop of loblolly pine, it will be possible to realize 

 10.47 per cent compound interest in 30 years on an initial invest- 



