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Home → Publications → Forest Regeneration Manual → Chapter 2 - Reforestation Economics, Law, and Taxation

Chapter 2 - Reforestation Economics, Law, and Taxation

Regeneration decisions depend on the landowner's management objectives, the biologically possible harvest and regeneration alternatives acceptable for the site, and the economic costs and returns for the investment. This chapter describes how economics, law, and taxation affect regeneration decisions. The first step in an economic analysis is determining the biologically and legally feasible management practices and their timing; the next step determining the costs of inputs to grow trees and the prices to be received at harvest. Cash-flow schedules for each management alternative must then be developed and those cash-flows discounted to determine present values and rates of return. Various criteria for financial investment decisions should be compared and tax consequences considered. Lastly, summaries of economic evaluations and recommendations are presented to decisionmakers.


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Author(s): Frederick W. Cubbage, John E. Gunter, Jeffrey T. Olson

Publication: Forest Regeneration Manual