From the 1800’s through the 1930's, 
stumpage prices for pine sawtimber in the 
South were very low—only a few dollars 
per thousand board feet. During these years, 
the economic opportunities that would yield 
competitive rates of return on investments in 
management practices must have been very 
limited. By the early 1950’s, stumpage 
prices had reached a level where large 
opportunities to manage timber did exist, 
and there are still large opportunities today. 
Only part of these opportunities are being 
utilized. 
Between 1935 and 1955, average pine sawtimber stumpage 
prices more than tripled in constant dollars. After a decade 
or so of relative stability in the late 1950’s and early 1960’s, 
average pine sawtimber stumpage prices rose sharply again 
and peaked in the late 1970’s. They fell in the early 1980's 
because of the economic recession. 
The available data on hardwood sawtimber stumpage prices 
show a gradual rise since the early 1900’s, although the 
level of prices for most hardwood timber has been much 
below that for softwoods (fig. 2.13, app. table 2.30). 
However, high-quality hardwood timber—large size, pre- 
ferred species—has brought very high prices, far above 
those for pine (app. tables 2.34 and 2.35). 
There are substantial geographic differences in both pine and 
hardwood stumpage prices (app. tables 2.31—2.35, and map 
accompanying app. table 2.33). In recent years, prices for 
pine sawtimber have been highest in the Coastal Plain. 
Prices for mixed hardwood sawtimber have tended to be 
highest in the Mississippi Delta, central plateau, and Appa- 
lachian highlands. Softwood pulpwood prices have been 
highest in the east gulf coastal plain and more recently the 
west gulf coastal plain. Hardwood pulpwood prices have also 
been relatively high in these sections as well as in the Mis- 
sissippi Delta. In general, these differences reflect the 
amount of competition for the available timber, although 
variations in timber characteristics and logging, manufac- 
turing, and transportation costs also contribute. 
Pulpwood stumpage prices for pine and hardwoods have re- 
mained low in most areas (fig. 2.14, app. tables 2.29-2.30 
and 2.36-2.37). The long stable trend in pulpwood stump- 
age prices reflects a favorable timber supply situation due 
in part to the woodpulp industry’s increasing use of pine 
chips from sawmills and other primary manufacturing 
plants and to the use of increasing volumes of hardwood. 
Before sawtimber stumpage prices began to rise in the late 
1930’s, they were so low that economic opportunities—the 
opportunities that would yield rates of return on investments 
in timber management practices comparable to those ob- 
tained in other kinds of investments—must have been very 
limited. As prices rose, this situation changed. By the early 
1950’s, prices had reached a level where large economic op- 
portunities to increase timber supplies did exist. This was 
quantified by studies prepared in the late 1960’s and the late 
1970’s and also by the analysis of economic opportunities 
contained in chapter 5 of this study. 
As stumpage prices have increased, part of the existing eco- 
nomic opportunities have been utilized. Part of the in- 
creases in investments that have been made, especially those 
since the 1940’s, reflect an economic or price response. 
However, all of the studies have shown that there continue 
to be large opportunities not being utilized. This is in part 
a result of the market imperfections in the forestry sector. 
These imperfections and their implications are described at 
the end of chapter 5. 
79 
