Almost 20 million acres of non-forest cropland in the South can be classified as marginal. Demand projections for forest products call for a 40 percent increase by year 2030. Recent regenerated tree acres lag behind harvested acres. Multiple land use practices combining trees and grazing adjusts cash flows forward mitigating negative flow period associated with conventional forest production. Profit opportunities for private, non-industrial landowners can be increased by ranking inputs in order of changes to net present value (NPV). A sensitivity analysis of an agroforestry scenario, including trees, beef cattle, and pasture, allows producers to concentrate management efforts where returns are greatest. Model results show greatest returns to NPV was realized from improvement to Chip-N-Saw income. The least increase in NPV came when the cost of control burns was changed. ObjectiveSocietal goals for agricultural land include conserving soil and water, controlling environmental pollution, and using both depletable and renewable resources wisely. Though not inconsistent with producer goals, financial stability is also necessary if a productive agriculture is to be sustained. When producers can be shown that an agricultural enterprise 1) is profitable, 2) produces a positive cash flow, and 3) shows efficiency and consistency, then implementation is likely to follow.The purpose of this paper is to determine the economic efficiency relationship between measures of enterprize profitability and varying levels of inputs. This will be accomplished by using input sensitivity analysis to examine the effect on profitability measures of an agroforestry enterprise, a multiple use agricultural cropping activity that is compatible with concerns of society for resource management. Input sensitivity analysis provides information necessary to assure that the agroforestry enterprise can be made compatible with financial goals of producers.
RCsumCAlmost 20 million non-forest, cropland acres in the southPresque 20 millions d'acres de terres de culture non boisCes eastern United States can be classified as marginal. Demand dans les Ctats du sud-est des Etats-Unis peuvent Ctre classifiCes projections for forest products call for a 40% increase by year comme terres marginales. Les prkvisions de la demande de 2030. Recently more land is being logged than regenerated. Land produits forestier prCvoient une augmentation de 40 pour 100 multiple use management, combining trees, cattle and wildlife, d'ici I'an 2030. Ces derniers temps, le niveau d'exploitation foreadjusts cash flows forward mitigating negative cash flow period stibre est suptrieur au niveau de rCgCnCration des terres. La associated with conventional forest production. Profit opportunigestion intCgrCe des terres axte sur la plantation d'arbres, ties for smaller landowners are increased. Modification of tree 1'Clevage du bCtail et la faune favorise la marge brute d'aupopulation and spacing, allowing inclusion of hay and pasture, tofinancement et attknue les pertes 9 ce chapitre associCes a l'exincreases net present value (NPV) of agroforestry over tradiploitation forestibre conventionnelle. Les petits propriCtaires ont tional forestry. Model results show an increase in NPV from donc la possibilitk d'augmenter leurs profits. La modification $554 to $948 per acre when beef cattle are added to loblolly des peuplements et l'espacement de f a~o n a permettre la culpines on marginal lands. ture du foin et de piiturage augmente la valeur actualiske nette (VNA) des activitCs d'agroforesterie par rapport ii la foresterie.
The need for low cost, ecologically sound, pine regeneration alternatives for adoption on Non-Industrial Private Forest (NIPF) lands is urgent. Seed tree and shelterwood methods of loblolly pine regeneration were examined by profitability analysis. Each were shown to be good investments. Also, a profitability comparison was made between natural regeneration and planted stands. Natural loblolly regeneration is financially competitive with clearcut and plant silviculture. The internal rate of return (IRR) was 10.8% for natural regeneration and 10.1% for site preparation and planting, after taxes and adjustment for inflation. South. J. Appl. For. 15(3):125-127.
The Tax Reform Act of 1986 (TRA'86) may reduce the timber-growing profitability of noncorporate landowners in the South. Effects vary by site index, length of rotation, market area, and tax provision. The long-run timber supply will be adversely affected by TRA'86. Short-run effects were not determined. Many producers will continue tree production with reduced profitability after TRA'86 because no better use for timber producing assets exists. Additional production and marketing efficiencies will be squeezed into tree production at the margin because of TRA'86. Some marginal producers, unable to become more efficient, may exit the industry. South. J. Appl. For. 15(3):113-117.
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