10% return 
Es 4% return 
Forest 
industry 
Other private 
Public 
0 15 30 45 60 
Million acres 
Figure 5.9—Area of timberland with economic opportunities 
to increase net annual growth in the South, by rate of return 
and ownership 
opportunities to harvest and replant mature timber and 
relatively little change in the area of the other treatment 
opportunities. 
Utilization of the treatment opportunities on timberland 
that would yield 10 percent or more on the investments 
would increase net annual growth by 1.8 billion cubic feet, 
56 percent of the growth attainable from the investments 
at the 4-percent rate. The regional distribution of the 
opportunities to increase net annual growth is much the same 
at both rates of return. However, at the 10-percent rate the 
proportion of the growth on the other private ownerships is 
reduced and that on forest industry ownerships is increased 
(fig. 5.12). This shift apparently reflects differences in site 
quality, treatment opportunities, and treatment costs. 
At the 10-percent rate of return, the opportunities to in- 
crease net annual growth on upland hardwood stands are 
only 38 percent of the total at the 4-percent rate (fig. 5.13). 
The opportunities are also greatly reduced on bottomland 
hardwood and mixed pine—hardwood sites and on nonstocked 
land. Pine plantations are the least affected by the higher 
rate. 
246 
The economic opportunities to increase net annual 
growth by regeneration with site preparation at the 
10-percent rate of return are only a third of those at the 
4-percent rate (fig. 5.14). Presumably, this decrease 
largely reflects the high per-acre cost of this kind of 
treatment. There is also a big reduction in the opportunities 
for stocking control. The opportunities to harvest mature 
stands are unchanged, and most of the other opportunities 
remain close to those at the 4-percent rate. 
The capital investment for the opportunities with a 10- 
percent rate of return would be $2.9 billion, 42 percent of 
that at the 4-percent rate. The average treatment cost per 
acre also declines from $98 to $80, an 18-percent drop. This 
decline means that many of the higher cost opportunities, 
particularly those for regeneration with site preparation, are 
screened out. The pattern of the investment opportunities 
by region, ownership, management type, and treatment are 
[4 4% return 
10% return 
Nonstocked pi 
land} | 
Pine 
plantations | 
Natural pine 
Pine- 
hardwoods 
Upland 
hardwoods 
Bottomland 
hardwoods 
0 10 20 30 
Million acres 
Figure 5.10—Area of timberland with economic opportuni- 
ties to increase net annual growth in the South, by rate of 
return and forest management type 
