Billion dollars 
Stand regeneration 4.1 
Harvest 
regenerate 
Stocking 07 
control 
Other bf 
Figure 5.8—Investment opportunities to increase net annual 
growth on timberland in the South, by treatment 
Most of the remaining investments needed for economic 
treatment opportunities are for stocking control. The average 
cost of this practice is $48 per acre. The associated increase 
in net annual growth is 40 cubic feet per acre. 
Nearly half of the investment opportunities, $3.3 billion, are 
in the upland hardwood management type, mostly for 
regeneration with site preparation. There are also large 
opportunities, again mostly for regeneration, in the natural 
pine, mixed pine—hardwood, and bottomland hardwood man- 
agement types. Investment opportunities on pine plantations 
are relatively small, $152 million. Over a third of this 
amount is for regeneration and about a quarter for harvest 
of mature stands. 
The large opportunities to increase timber supplies in the 
South reflect general silvicultural and economic conditions. 
In most cases, treatments are profitable because they in- 
crease net annual timber growth. However, some profitable 
opportunities also shift timber volume to higher value 
products, and/or accelerate earnings from stands. 
The difference between yields of managed and unmanaged 
stands indicates that improvements in biological productivity 
can be made on many acres throughout the South. Many 
stands can produce higher timber yields through more 
intensive management. By increasing stocking and by more 
244 
carefully managing stand growing stock, landowners can 
increase timber yields and the economic returns. 
Many stands have profitable opportunities because they have 
been high-graded or overcut in the past without subsequent 
management to restore productivity. Harvesting without 
adequate regeneration has left many stands poorly stocked, 
often with the least desirable trees, and producing far below 
potential. Without restoration of timber stands following 
cutting on these sites, longrun productivity is impaired. 
Yield gains from treatments do not alone account for the 
many profitable investment opportunities. Market factors 
promise better returns from timber stumpage in the future. 
Timber markets are good and improving in many areas of 
the South. The base projections indicate that real price 
increases for pine timber will continue in the future. As 
stumpage prices increase, the value of added timber yields 
also rises, but this market effect accounts for only part of 
the economic opportunities. As described below, many 
treatments remain profitable even if stumpage prices remain 
constant. 
Economic Opportunities To Increase Net Annual Timber 
Growth With Constant Stumpage Prices 
The estimates of acres of economic treatment opportunities 
described above were based on expectations that real prices 
for stumpage would rise through 2030 as shown by the 
base projections in chapter 4. Because these price assump- 
tions have a significant effect on potential profits from more 
intensive management, the entire set of treatment opportuni- 
ties was aiso analyzed with stumpage prices held constant 
at 1985 levels. Although these results are not fully detailed 
in this report, they are summarized below. 
For constant real prices, Southwide investment options 
potentially earning 4 percent above inflation or more are 
found on 62.3 million acres, compared with 70.0 million 
acres when real price increases are factored into the analy- 
ses. These acres could annually produce an added 3.0 billion 
cubic feet of timber for an investment of $5.8 billion. 
Therefore, 89 percent of the acres with investment oppor- 
tunities earning 4 percent or more with rising real prices will 
still earn at least 4 percent with constant real prices. 
Economic Opportunities To Increase Net Annual Timber 
Growth That Would Yield 10 Percent or More on the 
Investments 
The data in appendix tables 5.1—5.3, described in the pre- 
vious section, show the economic opportunities that would 
