FOREST PLANTING IN CANADA 125 



Futtire values of stumpage cannot be estimated nearly as exactly 

 as can futxire growth. But decreasing world supplies and increasing 

 demand will undoubtedly eventually push sttimpage prices up to, and 

 beyond, the cost of production of a timber crop. In the United States, 

 between 1900 and 1907 the cost of stumpage rose 93 per cent, and it is 

 still going up very rapidly. Douglas fir stumpage in the same period 

 increased 87 per cent, and cedar 251 per cent. In view of the fact 

 that Ontario white pine sttmipage has recently sold for over $13.00 

 per M. ft. B.M., it is reasonable to suppose that Douglas fir stumpage 

 in 60 years will be worth at least $6.00 per M. and will increase by 50 

 cents each decade after that. 



A hypothetical case with the above data, 60-year rotation, works 

 out per acre as follows : 



Initial outlay $5.00, 60 years at 5 per cent compound interest $ 93 . 40 

 Annual carrying charges 5 cents " " . 17.68 



Total Cost $111 .08 



Returns 34,500 ft. B.M. at $6 per M. ft. B.M 207.00 



Net profit per acre $ 95 . 92 



Which is at the rate of $1.60 per year in addition to the return of 

 S per cent on the investment. 



.For a 70-year rotation : 



Returns 46,350 ft. at $6.50 $301 .27 



Costs $152.15 +$29.43 181.58 



Net profit per acre $119 . 69 



which is at the rate of $1.70 per acre per year. 



For a rotation of 80 years the figures would be : 



Returns 56,400 ft. B.M. at $7.0. .0 $394.80 



Costs $247.80 +$48.56 296.36 



Net profit per acre $ 98.44 



which is at the rate of $1.23 per year per acre. 



Evidently from the above data, a 70-year rotation would be most 

 profitable. 



The above figures are purposely conservative. German forests 

 under sustained jaeld produce net revenues of from 50 cents to over 

 $5.00 per acre per year from land less productive than that of British 

 Colvimbia, in a climate less favourable and with a heavier initial outlay 

 in each rotation to ensure reproduction. 



