Just over half—1.8 billion cubic feet—of the opportunities 
to increase timber growth on timberland are in the South 
Central region. There are economic opportunities to in- 
crease net annual timber growth by over 0.2 billion cubic 
feet a year on timberland in every State in the South ex- 
cept Oklahoma and South Carolina. The largest potential— 
0.5 billion cubic feet—is in Alabama. 
Nearly half of the economic opportunities to increase net an- 
nual timber growth are in stands of the upland hardwood 
types. Most of the remainder is on natural pine and mixed 
pine-hardwood stands. Nearly half of the opportunities for 
increasing growth involve regenerating (with site preparation) 
nonstocked or cutover sites. Most of the rest involve ei- 
ther the harvesting and regeneration of mature stands or 
stocking control, cleaning, or release of stocked stands. 
The total additional investment required to utilize the eco- 
nomic opportunities to increase net annual growth on tim- 
berland is $6.9 billion. The largest part of this, about 
three-fifths, would fund regeneration with site preparation. 
Although the needed investments are large, the rate of re- 
turn on the investments would equal or exceed 4 percent, 
which approximates the longrun rate of return on invest- 
ments in the private sector of the U.S. economy. 
There are additional opportunities to increase net annual tim- 
ber growth in the South. There are currently 22 million 
acres of cropland and pasture that would yield higher rates 
of return to the owners if planted to pine. This includes 
nearly 8 million acres of highly erodible cropland that is 
suitable for growing trees. In a sense, all of these 22 mil- 
lion acres are marginal for crop and pasture use. If planted 
to pine, they would produce about 2.1 billion cubic feet of 
net annual timber growth. 
About three-fifths of the opportunities on marginal and 
highly erodible cropland and pasture are in the South Cen- 
tral region. There are substantial opportunities in all South- 
ern States. In most States the potential is above 100 mil- 
lion cubic feet a year. 
In making the base projections, it was assumed that a little 
over a third of the opportunities to increase net annual 
growth would be implemented over the projection period. 
However, the investments have not yet been made, and the 
opportunities as described do exist at this time. 
In total, net annual timber growth in the South could be in- 
creased by 5.3 billion cubic feet if all the economic oppor- 
tunities were utilized and the marginal and highly erodible 
cropland and pasture were planted to pine. This would 
nearly double current net annual softwood growth, and it is 
enough timber to sustain the forest industries in the South 
and employment and wages and salaries. 
Achieving the potential increase in timber growth would 
have very positive benefits for the South. It would help the 
region’s general economy because the effects of employ- 
ment in the forestry sector are multiplied in the trade, 
service, and transportation sectors, and other parts of the 
economy. Currently it is estimated that total employment 
is increased by about 2.3 jobs for each job in the lumber and 
wood products industry and by 2.6 jobs for each job in the 
pulp and paper products industry. 
Acheiving the full potential for greater timber growth would 
also have important national impacts. Consumers would pay 
less for timber products. 
12. Achieving the economic potential to grow a fourth 
forest in the South will require large increases in 
protection, technical and financial assistance, research, 
education, and management programs. 
There is clearly the economic potential to grow a fourth for- 
est in the South that can sustain much larger timber har- 
vests. But only a limited part of this potential is likely to be 
realized. This may be due in large part to market imperfec- 
tions in the forestry sector. The free market system that so 
effectively guides the production of most goods and ser- 
vices works in only, a limited way in increasing timber 
supplies. For example, the best available data show that for 
each 10-percent increase in stumpage prices, there is less 
than a 4-percent increase in supplies. 
This limited response to price changes largely reflects the 
characteristics of private timber owners other than forest 
industries. Various studies have shown that these owners 
have widely diverse objectives and attitudes; limited techni- 
cal knowledge of the ways timber stands should be 
marketed, harvested, regenerated, and managed; and vary- 
ing willingness and capacity to make investments in man- 
agement practices. Ownership tenures are typically short, and 
most owners are in the older age groups. Thus, for timber, 
where the time between investments and harvest is long, 
there is the likelihood that direct benefits, such as income 
from timber sales, will not accrue to many current owners. 
In the past, society has taken action to increase timber sup- 
plies by supplementing market forces, although the limited 
response of supplies to price changes has not been explic- 
itly recognized as the reason in any of the forestry 
legislation, and in only a limited way in the forestry 
