28 BULLETIN 13, U. S. DEPARTMENT OF AGRICULTURE. 
be held before being cut, the rate of interest, risk, depreciation of 
equipment, and proportion of the time it is in use, competition, etc. 
In general, a profit of 10 per cent over and above all logging costs is 
probably warranted in most regions where there is a fairly continuous 
employment for the sawmill equipment, and this rate of profit has 
been used in deriving the stumpage values in Table ll. 1 
A 10 per cent profit on an investment in stumpage and logging 
amounts to one-eleventh of the market value of the lumber. 2 For 
second-growth pine lumber at the market values given in Table S, 
the profit can therefore be obtained by dividing each value by 11. 
The profit per acre will be based on the average yields per acre given 
in Table 6. At 15, 20, 25, and 30 per cent this is, respectively, 
three-twenty-thirds, one-sixth, one-fifth, and three-thirteenths of the 
market value. 
Stump a g e Valu e . 
Stumpage values per thousand board feet and per acre (based on 
the board-foot yields in Table 6) are given in Table 11. These were 
obtained by deducting the logging costs per acre (Table 10) and a 10 
per cent profit on the combined stumpage and logging investment 
from the market values per acre given in Table 8. 2 They apply, for 
each quality, to stands of average yield, provided the market values 
and logging costs are identical with those used in this bulletin. The 
yield of individual stands may differ somewhat from the averages 
given, while the values and costs will, in all likelihood, vary with the 
locality. Where these are radically different the stumpage value is 
best found by means of the formula. 
i The effect on stumpage values of a 20 per cent profit is discussed in Forest Service Bulletin 96, pp. 24-29, 
- In computing the stumpage values the formula S= C was used, in which 5= stumpage value 
M= market value, C= logging costs, and P=rate of profit on the combined investment in stumpage and 
logging. For different rates of profit this reduces to the following forms: 
For a profit of 10 per cent: S=— M— C 
1.5 per cent: S=~ M— C 
20 per cent: S=~ M— C 
a 
2.5 per cent: S=— M— C 
30 per cent: 5=^ M— C 
To determine the stumpage value obtainable, if any desired rate of profit is to be -secured, the logging 
costs should therefore be deducted from the corresponding fraction of the market value. 
