﻿ESTIMATING 
  COST 
  OF 
  STAND 
  ESTABLISHMENT 
  

  

  When 
  the 
  possible 
  species 
  alternatives 
  have 
  

   been 
  reduced 
  by 
  eliminating 
  those 
  that 
  do 
  not 
  

   seem 
  likely 
  to 
  achieve 
  the 
  desired 
  objectives, 
  

   economic 
  evaluations 
  should 
  be 
  made 
  to 
  de- 
  

   termine 
  which 
  of 
  the 
  remaining 
  species 
  are 
  

   most 
  promising. 
  First, 
  an 
  estimate 
  of 
  costs 
  

   of 
  stand 
  establishment 
  must 
  be 
  made 
  for 
  each 
  

   species 
  and 
  for 
  each 
  management 
  alternative 
  

   that 
  applies. 
  

  

  Variable 
  Costs 
  

  

  Various 
  individual 
  costs 
  will 
  enter 
  into 
  the 
  

   estimate. 
  This 
  report 
  is 
  concerned, 
  only 
  with 
  

   variable 
  costs. 
  Fixed 
  costs, 
  primarily 
  those 
  

   associated 
  with 
  land 
  administration 
  and 
  fire 
  

   protection, 
  can 
  be 
  assumed 
  to 
  be 
  fairly 
  con- 
  

   stant 
  regardless 
  of 
  species. 
  

  

  The 
  variable 
  costs 
  for 
  timber 
  growing 
  in 
  

   the 
  Northern 
  Region 
  are 
  broadly 
  classified 
  

   under 
  the 
  following 
  activities: 
  2 
  

  

  Regeneration: 
  Site 
  preparation, 
  planting, 
  

   seeding 
  

  

  Stocking 
  control: 
  Precommercial 
  thinning 
  

   Quality 
  control: 
  Pruning 
  

   Protection: 
  Insect, 
  disease, 
  and 
  animal 
  con- 
  

   trol 
  

  

  The 
  management 
  alternatives 
  for 
  a 
  particu- 
  

   lar 
  species 
  in 
  any 
  given 
  situation 
  may 
  range 
  

  

  -The 
  allocation 
  of 
  costs 
  for 
  these 
  activities 
  may 
  

   vary. 
  For 
  example, 
  site 
  preparation 
  does 
  not 
  include 
  

   slash 
  disposal 
  for 
  hazard 
  reduction, 
  which 
  customari- 
  

   ly 
  is 
  charged 
  against 
  the 
  crop 
  just 
  harvested. 
  Only 
  

   the 
  cost 
  incurred 
  as 
  a 
  result 
  of 
  the 
  decision 
  to 
  utilize 
  

   the 
  land 
  to 
  grow 
  more 
  trees 
  should 
  be 
  charged 
  

   against 
  the 
  future 
  crop. 
  In 
  some 
  instances 
  site 
  prep- 
  

   aration 
  can 
  be 
  fully 
  accomplished 
  in 
  the 
  course 
  of 
  

   hazard 
  reduction; 
  in 
  such 
  cases 
  the 
  cost 
  of 
  site 
  prep- 
  

   aration 
  is 
  zero. 
  When 
  slashing 
  of 
  the 
  residual 
  stand 
  

   is 
  necessary 
  to 
  provide 
  enough 
  fuel 
  to 
  achieve 
  ade- 
  

   quate 
  site 
  preparation, 
  felling 
  costs 
  are 
  charged 
  

   against 
  the 
  future 
  crop. 
  Any 
  increase 
  in 
  burning 
  

   costs 
  caused 
  by 
  slashing 
  the 
  residual 
  stand 
  must 
  also 
  

   be 
  charged 
  to 
  the 
  future 
  crop. 
  Note 
  also 
  that 
  some 
  

   degree 
  of 
  stocking 
  control 
  is 
  achieved 
  through 
  con- 
  

   trol 
  of 
  planting 
  density. 
  

  

  from 
  no 
  treatment 
  to 
  any 
  combination 
  of 
  

   treatments. 
  Volume 
  yields 
  can 
  be 
  manipu- 
  

   lated 
  to 
  some 
  degree 
  by 
  cultural 
  treatments. 
  

   The 
  kind, 
  extent, 
  and 
  timing 
  of 
  such 
  treat- 
  

   ments 
  greatly 
  affect 
  the 
  costs 
  of 
  growing 
  

   timber. 
  

  

  In 
  estimating 
  costs, 
  we 
  may 
  be 
  concerned 
  

   with 
  (1) 
  the 
  general 
  or 
  average 
  level 
  of 
  cost 
  

   associated 
  with 
  the 
  type 
  of 
  work 
  required 
  by 
  

   the 
  treatment; 
  (2) 
  the 
  range 
  of 
  costs 
  applic- 
  

   able 
  to 
  a 
  particular 
  job; 
  and 
  (3) 
  the 
  variation 
  

   in 
  cost 
  due 
  to 
  variation 
  in 
  the 
  conditions 
  

   under 
  which 
  work 
  is 
  done. 
  Average 
  level 
  costs 
  

   and 
  range 
  of 
  costs, 
  such 
  as 
  those 
  shown 
  in 
  

   table 
  2, 
  are 
  useful 
  only 
  as 
  guides 
  in 
  project 
  

   planning. 
  Variations 
  must 
  be 
  estimated 
  as 
  far 
  

   as 
  possible. 
  

  

  Timber 
  growing 
  costs 
  on 
  specific 
  projects 
  

   vary 
  widely 
  depending 
  on 
  size 
  of 
  area, 
  top- 
  

   ography, 
  and 
  amount 
  of 
  work 
  required 
  (as 
  

   determined, 
  for 
  example, 
  by 
  type 
  of 
  site 
  prep- 
  

   aration 
  needed 
  or 
  number 
  of 
  trees 
  planted). 
  

   Even 
  the 
  cost 
  of 
  site 
  preparation 
  by 
  itself 
  

   varies. 
  If 
  fuels 
  are 
  adequate, 
  site 
  preparation 
  

   may 
  be 
  accomplished 
  by 
  the 
  fire 
  that 
  is 
  

   designed 
  primarily 
  to 
  reduce 
  hazard. 
  If 
  fuels 
  

   are 
  light, 
  it 
  may 
  be 
  necessary 
  to 
  use 
  some 
  

   form 
  of 
  mechanical 
  treatment, 
  which 
  is 
  more 
  

   costly. 
  

  

  At 
  the 
  present 
  time, 
  the 
  Northern 
  Region 
  

   estimates 
  the 
  average 
  costs 
  for 
  regeneration 
  

   establishment 
  to 
  range 
  from 
  a 
  low 
  of 
  $2 
  to 
  $3 
  

   per 
  acre 
  to 
  well 
  over 
  $100 
  per 
  acre, 
  depend- 
  

   ing 
  on 
  the 
  species 
  established, 
  site 
  prepar- 
  

   ation 
  needs, 
  and 
  regeneration 
  methods. 
  

  

  Costs 
  and 
  Management 
  Alternatives 
  

  

  When 
  there 
  are 
  several 
  species 
  alternatives, 
  

   the 
  cost 
  of 
  the 
  regeneration 
  project 
  is 
  influ- 
  

   enced 
  by 
  the 
  choice 
  of 
  the 
  silvicultural 
  system 
  

   used 
  to 
  harvest 
  the 
  existing 
  stand 
  and 
  to 
  re- 
  

   generate 
  a 
  new 
  stand. 
  Species 
  vary 
  in 
  their 
  

   silvicultural 
  requirements 
  and 
  the 
  land 
  mana- 
  

   ger 
  must 
  choose 
  a 
  system 
  compatible 
  with 
  

  

  6 
  

  

  