Economic Comparison of Natural and Planted Regeneration of Loblolly Pine

Dangerfield, Coleman W.; Edwards, Martin

doi:10.1093/sjaf/15.3.125

Cited by 8 publications

(4 citation statements)

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“…Our results also indicate that short-rotation planted pines are slightly preferred using LEV at sufficiently low discount rates, with higher net present values than natural stands. Third, the limited prior research on forests in the U.S. South found similar results, with natural forest investments having higher IRRs than planted forests (Cubbage et al 1991;Dangerfield and Edwards 1991). Fourth, the direction of the comparative results we found would remain the same as long as relative input costs were the same for planted or natural stands, assuming timber prices were constant.…”

Section: Wwwforest-journalcomsupporting

confidence: 61%

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The profitability of artificial and natural regeneration: A forest investment comparison of Poland and the U.S. South

Chudy,

Cubbage,

Siry

et al. 2023

J.For.Bus.Res.

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The historical development of silviculture has been closely related to an increasing need for timber, which resulted in more planted forests and artificial regeneration over time. The idea of natural regeneration through shelterwood cutting was often not accepted by forest owners as a management practice because of inadequate financial returns and less certain outcomes. Despite the evolving dominance of planted forests, questions remain if the lower costs of natural regeneration may still provide sufficient profitability of forest investments. In this paper, the profitability of planted versus natural forest management in Poland and the U.S. South was examined. A discounted cash flow model was developed to evaluate the profitability of artificial and natural regeneration in hypothetical Scots and loblolly pine stands in Poland and the U.S. South, respectively, and hardwood stands (dominated by oak spp.) in both countries. The results have shown that for both countries and species, natural regeneration regimes produce higher internal rates of return (IRR), largely due to less expensive establishment costs. The largest difference in returns is observed for hardwood in the US South (97 basis points, bps, or almost 1 percentage point), followed by pine in the US South (84 bps) and pine and hardwood in Poland (both ca. 70 bps). Southern pines in the U.S. South may have larger net present values (NPV) at moderate discount rates, as well as provide more certain wood production outcomes, which have contributed to their pervasive adoption. We conclude that natural stand forest management, in addition to better rates of return, may bring other non-financial benefits (e.g., genetic diversity, resilience), which may support forest owners and the environment, especially under changing climate conditions. Nevertheless, the regeneration method and its feasibility and profitability should be carefully considered on a case-by-case basis for each forest investment.

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Section: Wwwforest-journalcomsupporting

confidence: 61%

“…In the United States, Dangerfield and Edwards (1991) compared the profitability between natural regeneration and planted stands of loblolly pine (Pinus taeda). It was found that natural loblolly regeneration was financially competitive with a clearcut-and-plant method.…”

Section: Introductionmentioning

confidence: 99%

The profitability of artificial and natural regeneration: A forest investment comparison of Poland and the U.S. South

Chudy,

Cubbage,

Siry

et al. 2023

J.For.Bus.Res.

View full text Add to dashboard Cite

show abstract

“…Given the limited investment capital available to many nonindustrial private owners, it is important to consider new research on alternatives to highly intensive management practices. This point is especially significant in light of findings that natural regeneration has the potential to yield a higher internal rate of return on investment than planting, 10.8 percent versus 10.1 percent (Dangerfield and Edwards 1991). Current research covering low-cost regeneration techniques for pine-site timberland offers promise (Edwards and Dangerfield 19901, as do inexpensive management treatments for rapid recovery of understocked pine stands (Baker 1989).…”

Section: Discussionmentioning

confidence: 99%

Recent trends in the afforestation and reforestation of nonindustrial private pine forests in Alabama

McWilliams¹

1992

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A shrinking of Alabama's nonindustrial private pine forest prompted an analysis of recent trends in afforestation and regeneration. There has been an 828,100-acre addition to the nonindustrial pine-site timberland base from nonforest land uses. Planting has replaced natural seeding as the major cause of afforestation to pine. The area of nonindustrial pine-site timberland harvested in Alabama increased by 29 percent recently. Across all forest types, 68 percent of the harvest area had at least medium stocking of pine following harvest. There has been a significant improvement in the rate at which sites capable of supporting pine are regenerated with pine. The reforesta-t~o n rate was estimated at 73 percent, compared with 47 percent 8 years ago. Cover photo-Fully stocked lobiolly pine stand.

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“…An economic comparison was made by Dangerfield & Edwards(1991) between natural and planted regeneration of Loblolly pine under deterministic case. They found that natural loblolly regeneration is financially competitive with planted regeneration.…”

Section: Introductionmentioning

confidence: 99%

Risk-based selection of forest regeneration methods

Zhou

1999

Forest Ecology and Management

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A stochastic optimization model is developed to make a selection between the planting method and the seed-tree method, taking into account the uncertainty of, and the legal requirement on, the stocking level of the established seedlings in a given year after regeneration action. Uncertainty is quantified as the variation of the mortality rate of planted seedlings for the planting method, and as the prediction error for the seed-tree method. The objective of the forest landowner is assumed to maximize the expected net present value (NPV). Numerical simulations show that the owner should prefer the seed-tree method to the planting method for Scots pine stand. However, if the risk-free selection model is used, it overestimates the expected NPV by about 2 %. Sensitivity analysis shows that a less restrictive forest act could improve the expected net present value both for the planting method and the seed-tree method. Sensitivity analysis also shows that decreasing the level of variation of the mortality rate (or prediction error) increases the expected NPV.

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Economic Comparison of Natural and Planted Regeneration of Loblolly Pine

Cited by 8 publications

References 0 publications

The profitability of artificial and natural regeneration: A forest investment comparison of Poland and the U.S. South

The profitability of artificial and natural regeneration: A forest investment comparison of Poland and the U.S. South

Recent trends in the afforestation and reforestation of nonindustrial private pine forests in Alabama

Risk-based selection of forest regeneration methods

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