Spring 2000 Volume 9, Number 1

A CASE STUDY OF A WELL MANAGED TREE FARM

by Brian Cruser, Consulting Forester 

As we have all learned in dealing with our natural resources, the production of our forest resources depends on many factors. Some of the more important of these being soil type, history of the land treatment (such as farming, grazing, fire), and forest management (harvesting impact and timber stand improvement). Historically, most farmers never included their forest and as an active part of their farming operations. The woods was just an area they could not "farm" and was left to grow trees. In the post few decades, however, trees have proven to be a valuable source of additional income for our farms. This article examines an actual case study of one such farm in southeastern Indiana and the financial return received by the farmer. The former raised hogs and grain and because of a care for the land instilled to him by his father, he protected and managed the forestland. The following will examine in more detail, the results of his endeavors to make his forest a productive part of his farming operations.

Our farmer acquired the 182-acre property in 1965. Located on a rolling part of this farm was a 48-acre forest. The soils were productive for growing trees and the forest was well stocked over most of the area. The forestland was grazed previously by live-stock, but had been protected for many years prior to 1965. The value of the timber at the time was $1,654. There were a few minor harvests for form lumber through the years until 1985. In 1985, a forester was contacted to assist in a commercial harvest. The forester marked 289 trees containing an estimated 78,500 board feet (Doyle Rule) plus 43 cull trees (no volume estimated).The trees were selectively marked to thin the stand and allow the better quality trees to have more room to grow. The species included red oak, sugar maple, sycamore, white ash, hickory, and white oak. The sealed bid sale resulted in a net income of $17,362.The farmer then completed timber stand improvement at a cost of $720 (federal cost-share assistance was used).

To continue the process of improving the timber productivity of the forest, the next harvest was held in 1990. The forester marked 314 trees containing an estimated 69,757 board feet and 30 cull trees. The species included red oak, white oak, yellow poplar, low-up timber stand improvement completed at a cost of $1,920.Annual rate of return for uneven cash flows are difficult to calculate. Working through several calculations, I determined the annual rate of return for this forest investment to be 18.2%. indeed, a very competitive return for most long-term investments.

This forest continues to be productive and well stocked with the next harvest scheduled for 2005. Even as a forester, I continue to be amazed how a well managed forest continues to produce for above my expectations. I have found that the key to producing good results from your forest is to manage for the best quality you can. Whether it's sweetgum and pin oak or red oak and black walnut, growing quality is what counts.

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