yield at least 4 percent on investments in treatment oppor- 
tunities on timberland. Investments in many of these oppor- 
tunities would have rates of return much higher than 4 
percent, in many cases rates that compare favorably with the 
highest rates of return attainable on investments in other 
types of economic activity. For example, there are economic 
opportunities that would yield 10 percent or more in constant 
dollars on investments on 36 million acres of timberland, 52 
percent of the acres with opportunities yielding at least 4 
percent (app. table 5.4). 
The regional distribution of the areas that would yield 10 
percent or more is very similar to that of the areas yielding 
4 percent—a little over half in the South Central region and 
a little less than half in the Southeast (app. tables’5.5 and 
5.6). Opportunities by State are shown in table 5.7. There 
are substantial changes in the distribution of the opportunities 
among States from the 4-percent level. The opportunities by 
State and the changes between rates are briefly summarized 
in the following section. 
The distribution by ownership at the 10-percent rate of return 
is also roughly similar to that at 4 percent, although the 
proportion of the area in other private ownerships is some- 
what smaller and that in forest industry ownerships some- 
what larger (fig. 5.9). 
At the 10-percent rate of return, there are some substantial 
shifts in the economic opportunities among management 
types (fig. 5.10). The area with economic treatment oppor- 
tunities in upland hardwoods is greatly reduced, while that 
in pine plantations and natural pine is not much changed. 
At the 10-percent rate of return, there are also some sub- 
stantial shifts among the economic treatment opportunities 
(fig. 5.11). The biggest change is in regeneration with site 
preparation. The area at the 10-percent rate of return is only 
a quarter of that at the 4-percent rate. This decrease primarily 
reflects the relatively high cost of this kind of treatment. The 
area with opportunities for stocking control is also greatly 
reduced. In contrast, there is no change in the area with 
Table 5.7—Timberland needing treatment to improve productivity in the South, the area of timberland with 
opportunities for increasing net annual timber growth which will yield 10 percent or more,' and the associated 
treatment cost and net annual growth increment, by region and State 
Treatment 
Timberland opportunities Net 
Region and needing earning 10 percent Treatment annual growth 
State treatment or more cost increment 
Million Million Million Million 
acres acres dollars cubic feet 
Southeast 
Florida 7.8 3.0 170 118 
Georgia 10.0 33 379 256 
North Carolina Act 4.2 356 204 
South Carolina 4.9 22. 155 97 
Virginia 6.5 3.0 275 150 
Total 37.0 Lea 1,335 825 
South Central 
Alabama 10.6 6.1 505 327 
Arkansas 6.6 2.0 184 105 
Louisiana 7.6 4.4 370 229 
Mississippi 5.9 3.0 247 163 
Oklahoma 3.0 0.3 17 12 
Tennessee 6.0 0.9 92 49 
Texas 5.1 2.0 164 114 
Total 44.7 18.7 1,579 998 
Southwide total 81.7 36.4 2,914 1,822 
' Financial yields are measured in constant dollars, net of inflation or deflation. 
