tables of cash-flows for each investment opportunity. Cash- 
flows were analyzed to determine present net worth, 
internal rate of return, net volume changes, and impacts of 
capital costs on a per-acre basis. Financial results for 34 
production regions were combined with acreage data for 52 
State subregions to estimate financial returns for all acres 
in each subregion. Similar analyses were also conducted to 
figure financial returns for constant real stumpage prices. 
Area of Timberland With Economic Opportunities To 
Increase Net Annual Timber Growth 
The results of the analyses described above show that there 
are economic opportunities—those that would yield 4 per- 
cent or more in constant dollars on the investments—to in- 
crease net annual timber growth on 70 million acres, or 38 
percent of all the timberland in the South (table 5.6, fig. 
5.2, app. table 5.1). There are another 11.6 million acres 
needing treatment that would yield less than 4 percent on the 
investments. 
A little over half of the area with economic opportunities— 
36.5 million acres—is in the South Central region (app. ta- 
ble 5.3). The remaining acres—some 33.5 million—are in 
the Southeast (app. table 5.2). The largest acreage is in 
Alabama, 9.6 million acres. Economic opportunities exist 
on over 4 million acres in all Southern States except Okla- 
homa (table 5.6). 
Over 50 million acres, nearly three-quarters of the area 
with economic opportunities, are in the other private owner- 
There are economic opportunities—those 
that would yield 4 percent or more on the 
investments—to increase net annual timber 
growth on 70 million acres of timberland in 
the South. This is 39 percent of all the 
timberland in the area. 
Million acres 
All timberland 182.2 
South - - — 
with economic opportunities 
All timberland 84.9 
utheast : ne 
=o with economic opportunities 
All timberland 97.3 
with economic opportunities 
South Central 
Figure 5.2—Area of timberland with economic opportunities 
to increase net annual growth in the South, by region 
ships; another 13 million acres, or nearly a fifth of the total, 
are in the forest industry ownership (fig. 5.3). Most of the 
remaining area with economic opportunities is in national 
forests. 
The ownership distribution is about the same in both of the 
southern regions and in most States. There are, however, 
some State differences. For example, forest industry owner- 
ships with economic opportunities range from 8 percent of 
the total in Tennessee to 31 percent in Louisiana. In all 
States, the largest area with opportunities is in the other pri- 
vate ownerships. 
The largest economic treatment opportunity in the South— 
some 30 million acres, or 43 percent of the total—is regen- 
eration with site preparation (fig. 5.4). Stocking control (14 
million acres), clearcut mature stands and regenerate (13 mil- 
lion acres), and commercial thinning of poletimber stands 
(5 million acres) account for most of the remaining treat- 
ment opportunities. 
The relative ranking of the economic treatment opportuni- 
ties in the regions and most States is much the same as that 
for the South as a whole, although there are some differ- 
ences. For example, regeneration with site preparation 
239 
