Alternative Opportunities For Small Farms: Forestry Production Review

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Title:
Alternative Opportunities For Small Farms: Forestry Production Review
Physical Description:
Fact sheet
Creator:
Flinchum, D. Mitchell
Publisher:
University of Florida Cooperative Extension Service, Institute of Food and Agriculture Sciences, EDIS
Place of Publication:
Gainesville, Fla.
Publication Date:

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Collected for University of Florida's Institutional Repository by the UFIR Self-Submittal tool. Submitted by Melanie Mercer.
Publication Status:
Published
General Note:
"Publication date: June 1987."
General Note:
"RF-AC015"

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University of Florida Institutional Repository
Holding Location:
University of Florida
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All rights reserved by the submitter.
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IR00004465:00001


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FactSheetRF-AC015 June1987AlternativeOpportunitiesforSmallFarms: ForestryProductionReview1 D.MitchellFlinchum2Duetotheprojectedincreaseinthedemandfor forestproducts,thereareseveralstateandfederal programswhichmakeforestryinvestments economicallyattractive.Aswithanyinvestment wheretaxesareinvolved,thedegreeof"profit"is influencedheavilybytheowner'sotherincomesand taxbracket. Therearenominimumormaximumacreage requirementsassociatedwithaprofitableforestry investment.Smallacreagesmaybeasprofitableas largetractsiflocatedwithinareasonabledistance fromamill;locatedincloseproximitytootherlarge tractsandharvestedatthesametimeasthelarge tract;readilyaccessibleduringwetweather;supports high-qualityproducts;andfinally,theownerrealizes thesignificanceintreatingitlikeabusinesswhich meansmarketingtheproductsratherthanjustselling them.MARKETINGSITUATIONWoodproductsofthemanagedforestare numerous.Theymayincludeposts,pulpwood, chip-n-saw,sawtimber,veneerandpoles--allfrom onemanagedarea.Theformthatthefinalrawwood producttakesdependsonthelandownersfinancial status,marketdemands,qualityofstandingtrees, speciesplantedandrisks--allrelatingtohowlong thelandownerdecidestoinvestinthecrop.The varietyofwoodproductsaswellasthenumerous "non-wood"productsthataregeneratedfromthe managedforestmakeblanketproductionprojections virtuallyimpossibleandeconomicanalysescomplex. Evenwiththeassistanceofprofessionalforesters economicpredictionsregardingforestryinvestments maybenomorethaneducatedguesses.The landownershouldkeepthisinmindwhencomparing returnsfromforestryinvestmentstoannualcrops. Itstandstoreasonifthepulpandpapermillsare locatedinthenorthernandwesternregionsofFlorida thenorthernregionsofFloridawillhavethebest marketingopportunities.Ifprojectionsabout increasingfiberdemandsarevalid,andifFlorida continuestolose600,000acresofcommercialforest landasitdidbetween1970and1980,thenforestry investmentsinnorthFloridamayshowhigherprofits frombettermarkets.LABORANDCAPITALPreparingthesiteandplantingtheseedlingsare themajoractivitiesthatarenecessarytobegina forestryinvestment.Thelandownergenerally contractsvendorstodothework.Dependingonthe previousland-usesitepreparationmaybeaslittleas $4peracre(onrecentlyabandonedagricultureland, forexample)orasmuchas$200peracre(landthat hadalotoflowvaluedvegetation).Plantingmaybe byhandormachine.Machineplantingisgenerally contractedoutandin1984dollarsmaybearound 1.ThisdocumentisFactSheetRF-AC015,aseriesoftheExtensionAdministration,FloridaCooperativeExtensionService,InstituteofFood andAgriculturalSciences,UniversityofFlorida.Publicationdate:June1987. 2.D.MitchellFlinchum,professor,Forestry;CooperativeExtensionService,InstituteofFoodandAgriculturalSciences,UniversityofFlorida, GainesvilleFL32611. TheInstituteofFoodandAgriculturalSciencesisanequalopportunity/affirmativeactionemployerauthorizedtoprovideresearch,educational informationandotherservicesonlytoindividualsandinstitutionsthatfunctionwithoutregardtorace,color,sex,age,handicap,ornational origin.Forinformationonobtainingotherextensionpublications,contactyourcountyCooperativeExtensionServiceoffice. FloridaCooperativeExtensionService/InstituteofFoodandAgriculturalSciences/UniversityofFlorida/JohnT.Woeste,Dean

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AlternativeOpportunitiesforSmallFarms:ForestryProductionReview Page2$25-$40peracre.Thispricewouldincludetheprice oftheseedlings. Managedpineplantationsdonotrequireheavy expensesormanagementactivitieswhiletheyare beinggrowntoeconomicmaturity.Maintenanceof firelines,conductedatcostbytheFloridaDivisionof Forestry,andoccasionalprescribedfiresaregenerally theonlyexpensesinvolved.Thesewouldnotoccur everyyear,buttheaverageannualcostsdevotedto theseandanyothermanagementactivitieswould generallybelessthan$6peracrein1984dollars. Otherintermediateactivitieswoulddependonthe productthatisbeinggrown.Whilesuchactivitiesas chemicalweedcontrolandfertilizationmaybe considered,theyarenotalwaysnecessarynor economical.Thinnings,whichwouldbeneededfor longrotationproductssuchassawtimber,ofcourse wouldgenerateperiodicincome. Consideringthecurrenttaxincentivesandthe rolethesesavingsplayinaneconomicanalysis,most landownerswouldprobablyreapthegreatestprofits frominvestingnomorethan$10,000annually.The acreageplantedunderthisplanwouldthenbea functionoftheplantingandsitepreparationcosts.SUITABILITYANDPLANTINGSITUATIONSlashpinegrowsonthewettersandysoilsin Florida.Treeseedlingsbredforrapid,straight growth,andfusiformresistanceareavailable.Slash pineisespeciallysuitedtotheflatwoods--land supportingsawpalmetto,gallberryaridwiregrass. Longleafpinegrowsonawidevarietyofsitesbut growsbestonmoderatelywettomoderatelydrysites. Itsusehasbeenlimitedbydifficultyinnursery production,planting,anddelayedearlygrowthwhile itisinthe"grassstage."Researchanddevelopment effortspromisetosolvemanyoftheseproblems. Loblollypinegrowsespeciallywellonloamysoils thateitheroccurindrainagesorlandsuitablefor agriculture.Abandonedcroplandsthatwereonce producersofgoodfieldcropsusuallygrowloblolly pinewell.Sandpinegrowsbestondroughtysandy soilsthatnevergetsaturatedwithwater.Ofthetwo racesrecognized,theChoctawhatcheeraceisusually preferredovertheOcalarace.Awoodland dominatedbyturkeyoakandsparselongleafpinewill usuallygrowsandpinerapidly.Sandpinealsoshows potentialforChristmastreesaswellasforpulp products. PlantingstockforFloridaisgenerallysupplied fromtwostate-ownedandsixindustry-owned nurseries.Manyoftheseedlingsweregerminated fromgeneticallysuperioranddiseaseresistantseed stock.Seedlingsaregenerallyplantedinthelate fall-earlywinter;therefore,seedlingordersmustbe placedwiththeFloridaDivisionofForestrybyJune orJulypriortoplantingseason.Seedlingorderforms maybeobtainedthroughthecountyforester'soffice.CULTURALPROGRAMLossesduetoinsectattacksonyoungpine seedlingsoftennecessitatefallowingoftheland,a practicethatcostsapproximately$1millionperyear inFlorida.Thefusiformrustdiseaseofyoungpines isourworstdiseaseproblem,causingmanymillions ofdollarslosseachyear.Olderstandscansuffer significantimpactfromannosusrootrotandpitch cankerdieback.Pitchcankeroccursperiodicallyin devastatingoutbreaks.Barkbeetlesattacksawtimber treesandcertainrootdiseasescauselossesofupto $2.5millioneachyear.Thefrequencyandseverityof manyofthesepest-relatedlossesareaffectedbysoil andclimaticfactorsandforestmanagementpractices. Thesepest-relatedlossesfrequentlycanoffsetgains madeingeneticimprovementeffortsandinvestments inintensivemanagementpractices. Anylongterminvestmentinherentlyhasrisks, andforestryisnoexception.Over7,000firesburned morethan135,000acresduring1980.Althoughdata havenotbeentotaled,perhaps10,000firesburned over200,000acresduring1981.Prescribedburning tohelppreventwildfiresiscommonandiscarriedout bytheDivisionofForestryforafeeorbyindustrial andprivateforestersunderpermitsissuedbythe state.