• TABLE OF CONTENTS
HIDE
 Title Page
 Introduction
 Corn and soybeans
 Pines
 Compounding, discounting and...
 Methods
 Assumptions
 Example using equation 1
 Example using equation 2
 Tax treatment of pines
 Conclusion
 References
 Appendix






Title: Guide for comparing returns from forestry investments to annual crops
CITATION PAGE IMAGE ZOOMABLE PAGE TEXT
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00027980/00001
 Material Information
Title: Guide for comparing returns from forestry investments to annual crops
Series Title: Florida Cooperative Extension Service Circular 592
Physical Description: Book
Creator: Eason, Mark,
Affiliation: University of Florida -- Florida Cooperative Extension Service -- Institute of Food and Agricultural Sciences
Publisher: Florida Cooperative Extension Service
Publication Date: 1984
 Notes
Funding: Florida Historical Agriculture and Rural Life
 Record Information
Bibliographic ID: UF00027980
Volume ID: VID00001
Source Institution: Marston Science Library, George A. Smathers Libraries, University of Florida
Holding Location: Florida Agricultural Experiment Station, Florida Cooperative Extension Service, Florida Department of Agriculture and Consumer Services, and the Engineering and Industrial Experiment Station; Institute for Food and Agricultural Services (IFAS), University of Florida
Rights Management: All rights reserved by the source institution and holding location.

Table of Contents
    Title Page
        Page i
        Page ii
    Introduction
        Page 1
    Corn and soybeans
        Page 1
    Pines
        Page 2
    Compounding, discounting and annuities
        Page 2
    Methods
        Page 3
    Assumptions
        Page 3
    Example using equation 1
        Page 4
        Page 5
    Example using equation 2
        Page 6
    Tax treatment of pines
        Page 6
    Conclusion
        Page 6
    References
        Page 6
        Page 7
    Appendix
        Page 8
        Page 9
        Page 10
Full Text




July 1984 Circular 592




A Guide for Comparing Returns
from Forestry Investments
to Annual Crops



M.A. Eason and D. M. Flinchum

























Florida Cooperative Extension Service Institute of Food and Agricultural Sciences
University of Florida, Gainesville John T. Woeste, Dean for Extension




























M. A. Eason
Former Extension Farm Management Specialist
FRED, AREC Quincy


D. M. Flinchum
Extension Forest Management Specialist
School of Forest Resources and Conservation
IFAS, University of Florida, Gainesville 32611










Introduction Corn and Soybeans
Florida crop producers have been burdened with a cost- The estimated costs of producing one acre of corn and
price squeeze for the last three or four years. While produc- soybeans for sandy soils in North Florida are shown in Table
tion expenses have recently moderated, large supplies and 1 and 3. Cash costs per acre were $151.28 for corn and
weak demand have kept farm prices depressed. With good $136.13 for soybeans. Total costs which include both cash
land, corn and soybeans may pay their way if decent yields costs and fixed costs summed to $166.38 and $150.50 for
and prices are realized. But what about "marginal" row crop corn and soybeans respectively Land cost was not included
land? In many cases marginal land is not providing a positive in order to make net returns to land comparable with the an-
return in today's agricultural economy nuities from pines.
The purpose of this analysis is to provide current infor- Net returns per acre with various yields and prices are
nation on costs and returns from growing pines, corn, and shown in Tables 2 and 4. Corn, for example, with a yield of
soybeans. Producers and potential producers need up-to- 50 bushels nets $8.62 per acre at a price of $3.50. At $3.50
date costs and return production figures in order to make per bushel, 47.5 bushels of corn per acre is needed to break-
decisions regarding resource allocation. These analyses even or cover all costs.
should be used only as a guide in the decision making process A net return of $12.00 is realized for soybeans at a yield
because individual situations differ. of 25 bushels per acre and a price of $6.50 per bushel. To


Table 1. Estimated costs of producing one acre of dryland corn, North Florida, 1983.
Item Unit Quant. Price Value Your Cost

Cash expenses:
Seed lb. 12.0 1.20 14.40
Fertilizer (5-10-15 or equivalent) cwt. 5.0 7.50 37.50
Nitrogen lb. N 80 .26 20.80
Lime (spread) ton .33 18.00 5.94
Herbicide acre 1.0 18.00 18.00
Tractor (80 hp) hr. 1.35 4.72 6.37
Truck, pickup mi. 20.0 .11 2.20
Other machinery hr. 1.35 2.10 2.84
Labor hr. 3.0 4.00 12.00
Combine acre 1.0 22.00 22.00
Interest on cash exp.1 $ 142.05 .065 9.23
Total cash expenses 151.28
Fixed costs:
Tractor (80 hp) hr. 1.35 5.63 7.60
Truck, pickup mi. 20.0 .14 2.80
Other machinery hr. 1.35 3.48 4.70
Total fixed costs 15.10
Total costs 166.38
113% for 6 months.

Table 2. Net returns of corn per acre with varying yields and prices.
Yield per acre (bu.)
Price 40 50 60 70 80
------------------------ Dollars ------------------------
$2.50 -66.38 -41.38 -16.38 8.62 33.62
2.75 -56.38 -28.88 1.38 26.12 53.62
3.00 -46.38 16.38 13.62 43.62 73.62
3.25 -36.38 3.88 28.62 61.12 93.62
3.50 -26.38 8.62 43.62 78.62 113.62
3.75 16.38 21.12 58.62 96.12 133.62


1










Introduction Corn and Soybeans
Florida crop producers have been burdened with a cost- The estimated costs of producing one acre of corn and
price squeeze for the last three or four years. While produc- soybeans for sandy soils in North Florida are shown in Table
tion expenses have recently moderated, large supplies and 1 and 3. Cash costs per acre were $151.28 for corn and
weak demand have kept farm prices depressed. With good $136.13 for soybeans. Total costs which include both cash
land, corn and soybeans may pay their way if decent yields costs and fixed costs summed to $166.38 and $150.50 for
and prices are realized. But what about "marginal" row crop corn and soybeans respectively Land cost was not included
land? In many cases marginal land is not providing a positive in order to make net returns to land comparable with the an-
return in today's agricultural economy nuities from pines.
The purpose of this analysis is to provide current infor- Net returns per acre with various yields and prices are
nation on costs and returns from growing pines, corn, and shown in Tables 2 and 4. Corn, for example, with a yield of
soybeans. Producers and potential producers need up-to- 50 bushels nets $8.62 per acre at a price of $3.50. At $3.50
date costs and return production figures in order to make per bushel, 47.5 bushels of corn per acre is needed to break-
decisions regarding resource allocation. These analyses even or cover all costs.
should be used only as a guide in the decision making process A net return of $12.00 is realized for soybeans at a yield
because individual situations differ. of 25 bushels per acre and a price of $6.50 per bushel. To


Table 1. Estimated costs of producing one acre of dryland corn, North Florida, 1983.
Item Unit Quant. Price Value Your Cost

Cash expenses:
Seed lb. 12.0 1.20 14.40
Fertilizer (5-10-15 or equivalent) cwt. 5.0 7.50 37.50
Nitrogen lb. N 80 .26 20.80
Lime (spread) ton .33 18.00 5.94
Herbicide acre 1.0 18.00 18.00
Tractor (80 hp) hr. 1.35 4.72 6.37
Truck, pickup mi. 20.0 .11 2.20
Other machinery hr. 1.35 2.10 2.84
Labor hr. 3.0 4.00 12.00
Combine acre 1.0 22.00 22.00
Interest on cash exp.1 $ 142.05 .065 9.23
Total cash expenses 151.28
Fixed costs:
Tractor (80 hp) hr. 1.35 5.63 7.60
Truck, pickup mi. 20.0 .14 2.80
Other machinery hr. 1.35 3.48 4.70
Total fixed costs 15.10
Total costs 166.38
113% for 6 months.

Table 2. Net returns of corn per acre with varying yields and prices.
Yield per acre (bu.)
Price 40 50 60 70 80
------------------------ Dollars ------------------------
$2.50 -66.38 -41.38 -16.38 8.62 33.62
2.75 -56.38 -28.88 1.38 26.12 53.62
3.00 -46.38 16.38 13.62 43.62 73.62
3.25 -36.38 3.88 28.62 61.12 93.62
3.50 -26.38 8.62 43.62 78.62 113.62
3.75 16.38 21.12 58.62 96.12 133.62


1










Table 3. Estimated costs of producing one acre of soybeans, North Florida, 1983.

Item Unit Quant. Price Value Your Cost
Cash expenses:
Seed bu. .80 12.00 9.60
Inoculant pkg. 1.00 1.00 1.00
Fertilizer (0-10-20 or equivalent) cwt. 3.00 7.75 23.25
Lime (spread) ton .33 18.00 6.00
Herbicide acre 1.00 19.00 19.00
Insecticide acre 1.00 16.00 16.00
Spraying (air) appl. 2.00 3.50 7.00
Scouting fee acre 1.00 3.00 3.00
Tractor (80 hp) hr. 1.30 4.72 6.14
Truck, pickup mi. 20 .11 2.20
Combine (custom) acre 1 20.00 20.00
Other machinery hr. 1.30 2.02 2.63
Labor hr. 3.00 4.00 12.00
Interest on cash exp.' $ 127.82 .065 8.31
Total cash expenses 136.13
Fixed costs:
Tractor (80 hp) hr. 1.30 5.63 7.32
Truck, pickup mi. 20 .14 2.80
Other machinery hr. 1.30 3.27 4.25
Total fixed costs 14.37
Total costs 150.50
' 13% for 6 months.

Table 4. Net returns of soybeans per acre with varying yields and prices.
Yield per acre (bu.)
Price 10 15 20 25 30
------------------------------- Dollars -------------------------------
$5.00 -100.50 -75.50 -50.50 -25.50 .50
5.50 95.50 -68.00 -40.50 -13.00 14.50
6.00 90.50 -60.50 -30.50 -. .50 29.50
6.50 85.50 -53.00 -20.50 12.00 44.50
7.00 80.50 -45.50 -10.50 24.50 59.50
7.50 75.50 38.00 .50 37.00 74.50

break-even, using a selling price of $6.50 per bushel, 23.1 all relating to how long the landowner decides to invest in
bushels is needed. the crop.
The following exercises represent analyses for two dif-
Pines ferent management strategies for slash pine in Florida. The
There are many variables that affect the economics of assumptions and values used in the exercises are based on
There are many variables that affect the economics of
the best information available. Please note that yields used
pine production. In contrast to annual crops, trees represent this anasis ar oneva. Tis analysis s ld be
but one of from a in this analysis are conservative. This analysis should be
but one of numerous 'products' generated from a forest man-
used only as a guide in the decision making process since
agement area. Non-wood products such as forest-basedy g process
each situation is different. Contact your county forester re-
recreation, aquifer recharge, wildlife habitat, and forage, guarding detailed information for a particular site.
garding detailed information for a particular site.
represent some of the multiple uses of the managed forest.
Wood products also vary In many instances the landowner Compounding, Discounting and Annuities
will not need to specify the product objectives at the time of
planting. The form that the final raw wood product takes de- To compare returns from a long range investment in tim-
pends on the financial status of the landowner, market de- ber with returns from enterprises yielding annual market-
mands, quality of standing trees, species planted and risks able products involves the principles of compounding,


2










Table 3. Estimated costs of producing one acre of soybeans, North Florida, 1983.

Item Unit Quant. Price Value Your Cost
Cash expenses:
Seed bu. .80 12.00 9.60
Inoculant pkg. 1.00 1.00 1.00
Fertilizer (0-10-20 or equivalent) cwt. 3.00 7.75 23.25
Lime (spread) ton .33 18.00 6.00
Herbicide acre 1.00 19.00 19.00
Insecticide acre 1.00 16.00 16.00
Spraying (air) appl. 2.00 3.50 7.00
Scouting fee acre 1.00 3.00 3.00
Tractor (80 hp) hr. 1.30 4.72 6.14
Truck, pickup mi. 20 .11 2.20
Combine (custom) acre 1 20.00 20.00
Other machinery hr. 1.30 2.02 2.63
Labor hr. 3.00 4.00 12.00
Interest on cash exp.' $ 127.82 .065 8.31
Total cash expenses 136.13
Fixed costs:
Tractor (80 hp) hr. 1.30 5.63 7.32
Truck, pickup mi. 20 .14 2.80
Other machinery hr. 1.30 3.27 4.25
Total fixed costs 14.37
Total costs 150.50
' 13% for 6 months.

Table 4. Net returns of soybeans per acre with varying yields and prices.
Yield per acre (bu.)
Price 10 15 20 25 30
------------------------------- Dollars -------------------------------
$5.00 -100.50 -75.50 -50.50 -25.50 .50
5.50 95.50 -68.00 -40.50 -13.00 14.50
6.00 90.50 -60.50 -30.50 -. .50 29.50
6.50 85.50 -53.00 -20.50 12.00 44.50
7.00 80.50 -45.50 -10.50 24.50 59.50
7.50 75.50 38.00 .50 37.00 74.50

break-even, using a selling price of $6.50 per bushel, 23.1 all relating to how long the landowner decides to invest in
bushels is needed. the crop.
The following exercises represent analyses for two dif-
Pines ferent management strategies for slash pine in Florida. The
There are many variables that affect the economics of assumptions and values used in the exercises are based on
There are many variables that affect the economics of
the best information available. Please note that yields used
pine production. In contrast to annual crops, trees represent this anasis ar oneva. Tis analysis s ld be
but one of from a in this analysis are conservative. This analysis should be
but one of numerous 'products' generated from a forest man-
used only as a guide in the decision making process since
agement area. Non-wood products such as forest-basedy g process
each situation is different. Contact your county forester re-
recreation, aquifer recharge, wildlife habitat, and forage, guarding detailed information for a particular site.
garding detailed information for a particular site.
represent some of the multiple uses of the managed forest.
Wood products also vary In many instances the landowner Compounding, Discounting and Annuities
will not need to specify the product objectives at the time of
planting. The form that the final raw wood product takes de- To compare returns from a long range investment in tim-
pends on the financial status of the landowner, market de- ber with returns from enterprises yielding annual market-
mands, quality of standing trees, species planted and risks able products involves the principles of compounding,


2









discounting and annuities. Discounting is the process used Pine establishment costs are compounded and then dis-
to obtain present values. A present value is defined as the counted to realize the present value. The present value is
sum of money which would have to be invested now, at a then multiplied by an annuity factor to get the value on an an-
given rate of interest, to equal the future sum on the same nual basis. An annual expense is subtracted from this figure
date. Compounding is the reverse of discounting. A present to obtain the annual annuity or return per acre.
sum is compounded to find its future value and a future sum
is discounted to find its present value. An annuity is an annual Methods
return to land from timber that can be compared to annual
returns from crop and other enterprises. The net annual There are two formulas that can be used to determine the
equivalent (NAE) of the pine rotation is used to compare an- NAE. One is used when there are multiple sales in a rotation
nual returns of pines to annual returns of soybeans and corn. and the other is used when there is only one sale in a rotation.
Soybean and corn selling prices and costs are kept at For example, if several sales occurred in a rotation, such as
present values as pine current prices are compounded to thinning at years 15, 20, 25 and clear-cutting at 30 years,
obtain future prices which are multiplied by expected yields. then Equation 1 would be used to determine the NAE.

(Equation 1)
Yield x Future Price* Annual Costs (Compound Factor) 1 Establishment Annuity
NAE x
Discount Factor For That Year Discount Rate (Compound Factor) Costs Factor
*Summed for each sale




Equation 2 would be used when only one sale is made. An Cost Share Programs
example would be clear-cutting a 25 year old pine stand. Several federal and state reimbursement programs may
Sbe available to help offset the cost of establishing a forestry
(Equation 2) investment. The Forestry Incentive Program (FIP) is ad-
x Future Compound Annuity ministered through the Agricultural Stabilization and Con-
NAE Yield ce Estab. Cost Factor servation Service (ASCS) office and implemented with the
Discount Factor assistance of the Florida Division of Forestry County For-
Ass ester. Under this program a landowner may be reimbursed
Assumptions for up to 65% of the stand establishment costs, not to exceed
Any economic analysis relies to some extent on assump- a certain amount per acre. In this comparative analysis it is
tions. Due to the complexities of long term investments such assumed that the landowner will receive 65% reimburse-
as forestry many of these assumptions may be no better than ment; therefore, the stand establishment costs are reduced
educated guesses, to only $12.25 per acre (Table 5).

Land Management Costs
Land value is not included since the annuity is an annual Once established, the management costs of a forestry in-
return to the timber resource. Land alone has long been con- vestment are minimal. Generally they consist of firebreak
sidered a good investment because of rising land prices, maintenance and periodic prescribed fire. A $2.00 per acre
Whether being purchased or already owned, timber produc- per year management expense is included in these compar-
tion is considered as another investment and should be isons (Table 5).
treated differently
Tree Growth
Stand Establishment Costs
The volume of wood that can be grown on an acre of land
The major cost in establishing a pine plantation are pre- during a given time period depends upon many factors. The
paring the site, buying seedlings and planting services. Since productive capacity of a certain tract of land for a given spe-
this analysis is being used as a guide to compare a forestry cies is called site quality which is the average height of the
investment with an annual crop it is assumed that the land' dominant and co-dominant trees on that site at age 25. A site
was previously occupied with row crops; therefore, no site quality of 40 would be considered low and a site quality of 80
preparation costs are included. Costs included are contract or above would be considered high. This analysis assumes
planting and seedling costs ($35.00 per acre). that the site quality for slash pine is 60. This analysis as-


3









discounting and annuities. Discounting is the process used Pine establishment costs are compounded and then dis-
to obtain present values. A present value is defined as the counted to realize the present value. The present value is
sum of money which would have to be invested now, at a then multiplied by an annuity factor to get the value on an an-
given rate of interest, to equal the future sum on the same nual basis. An annual expense is subtracted from this figure
date. Compounding is the reverse of discounting. A present to obtain the annual annuity or return per acre.
sum is compounded to find its future value and a future sum
is discounted to find its present value. An annuity is an annual Methods
return to land from timber that can be compared to annual
returns from crop and other enterprises. The net annual There are two formulas that can be used to determine the
equivalent (NAE) of the pine rotation is used to compare an- NAE. One is used when there are multiple sales in a rotation
nual returns of pines to annual returns of soybeans and corn. and the other is used when there is only one sale in a rotation.
Soybean and corn selling prices and costs are kept at For example, if several sales occurred in a rotation, such as
present values as pine current prices are compounded to thinning at years 15, 20, 25 and clear-cutting at 30 years,
obtain future prices which are multiplied by expected yields. then Equation 1 would be used to determine the NAE.

(Equation 1)
Yield x Future Price* Annual Costs (Compound Factor) 1 Establishment Annuity
NAE x
Discount Factor For That Year Discount Rate (Compound Factor) Costs Factor
*Summed for each sale




Equation 2 would be used when only one sale is made. An Cost Share Programs
example would be clear-cutting a 25 year old pine stand. Several federal and state reimbursement programs may
Sbe available to help offset the cost of establishing a forestry
(Equation 2) investment. The Forestry Incentive Program (FIP) is ad-
x Future Compound Annuity ministered through the Agricultural Stabilization and Con-
NAE Yield ce Estab. Cost Factor servation Service (ASCS) office and implemented with the
Discount Factor assistance of the Florida Division of Forestry County For-
Ass ester. Under this program a landowner may be reimbursed
Assumptions for up to 65% of the stand establishment costs, not to exceed
Any economic analysis relies to some extent on assump- a certain amount per acre. In this comparative analysis it is
tions. Due to the complexities of long term investments such assumed that the landowner will receive 65% reimburse-
as forestry many of these assumptions may be no better than ment; therefore, the stand establishment costs are reduced
educated guesses, to only $12.25 per acre (Table 5).

Land Management Costs
Land value is not included since the annuity is an annual Once established, the management costs of a forestry in-
return to the timber resource. Land alone has long been con- vestment are minimal. Generally they consist of firebreak
sidered a good investment because of rising land prices, maintenance and periodic prescribed fire. A $2.00 per acre
Whether being purchased or already owned, timber produc- per year management expense is included in these compar-
tion is considered as another investment and should be isons (Table 5).
treated differently
Tree Growth
Stand Establishment Costs
The volume of wood that can be grown on an acre of land
The major cost in establishing a pine plantation are pre- during a given time period depends upon many factors. The
paring the site, buying seedlings and planting services. Since productive capacity of a certain tract of land for a given spe-
this analysis is being used as a guide to compare a forestry cies is called site quality which is the average height of the
investment with an annual crop it is assumed that the land' dominant and co-dominant trees on that site at age 25. A site
was previously occupied with row crops; therefore, no site quality of 40 would be considered low and a site quality of 80
preparation costs are included. Costs included are contract or above would be considered high. This analysis assumes
planting and seedling costs ($35.00 per acre). that the site quality for slash pine is 60. This analysis as-


3









sumes that the original stocking rate was 600 surviving the current stumpage price used is assumed to increase 5%
trees per acre and where thinning is involved, it assumes for the first 15 years and 2.5% for the second 15 years.
that the residual stand supports a basal area of 60 square
feet/acre. Example Using Equation 1
t ad F S P To determine the NAE of a rotation with multiple sales,
Current and Future Stumpage Price
Equation 1 would be used. Table 6 shows the calculations
In forestry the selling price is called stumpage price the used for obtaining future revenue for a planted slash pine
price paid for trees as they stand in the forest. Stumpage stand thinned to 60 square feet residual basal area per acre
prices vary considerably in relation to the product sold, the at 15, 20, and 25 years and clear-cut at 30 years. The pre-
location of the sale, the terms of the contracts, the season dicted yields were obtained from a growth model developed
of logging, and many other factors. In these exercises the by Clutter andJones, 1980. Compounding, discounting, and
current stumpage price used was obtained from the Timber annuity factor values used in the computations are included
Mart South raw forest product price report for the past two in Appendix Tables 1 and 2.
years. Both pulpwood ($23.00/standard cord) and sawtim- Table 7 illustrates the discounted revenue at an 8% dis-
ber ($143.00/thousand board feet) prices would be consid- count rate. Table 8 shows the same values at a 10% discount
ered conservative for most sales in Florida. Due to inflation rate to illustrate the effects of changing discount rates.




Table 5. Estimated establishment and maintenance expense per acre for pines, 1983.

Establishment expense per acre:
Contract planting $25.00
Seedlings 10.00
$35.00
ASCS reimbursement (65% of costs) -22.75
Total establishment costs $12.25
Maintenance Expense:
Management, fire control, and risk = $2.00 per acre per year

No site preparation necessary on fields formerly engaged in row crops. However, if site preparation is needed then one of
the following estimates should be added to establishment cost.
- Light site preparation $ 50.00/acre
- Medium site preparation $ 85.00/acre
- Heavy site preparation $140.00/acre





Table 6. Estimated future revenue per acre based on predicted yields and estimated market prices.
Sawtimber Total
Year of Type of Pulpwood Yield Price/ Yield Revenue/
Harvest Harvest Cords/Acre Cord MB/Acre Price/MBF Acre

15 Pulpwood 4.5 cords $47.81 $ 215.15
Thinning
20 Pulpwood 4.7 cords $54.09 $ 254.22
Thinning
25 Pulpwood 4.6 cords $67.20 $ 309.12
Thinning
30 Clearcut 7.7 cords $69.24 7.05 $430.55 $3,570.25
$4,348.74



4









Table 7. Computations of Discounted Revenue at 8% discount rate.
Discount Factor Discounted Revenue =
Year of Total (obtained from Total Revenue/
Harvest Revenue/Acre Appendix Table 1) Discount Factor

15 215.15 3.172 $ 67.83
20 254.22 4.661 $ 54.54
25 309.12 6.848 $ 45.14
30 3,570.25 10.063 $354.79
$522.30


Table 8. Computations of Discounted Revenue at a 10% discount rate to illustrate the effects of
changing discount rates.
Discount Factor Discounted Revenue =
Year of Total (obtained from Total Revenue/
Harvest Revenue/Acre Appendix Table 1) Discount Factor

15 215.15 4.177 $ 51.51
20 254.22 6.728 $ 37.79
25 309.12 10.835 $ 28.53
30 3,570.25 17.449 $204.61
$322.44

Table 9. Net annual equivalents for multiple sales at 8% and 10% discount rate.
8% Discount Rate 10% Discount Rate

*PV of Annual Costs = PV of Annual Costs =
$2.00 [(10.063) 1] $2.00 [(17.449) 1]
.08 (10.063) .10 (17.449)
$522.30 Discounted Revenue $322.44 Discounted Revenue
-22.52 Annual Costs 18.85 Annual Costs
499.78 303.59
12.25 Establishment Costs 12.25 Establishment Cost
487.53 Net present value 291.34 Net present value
x .0888 Annuity factor (8% at 30 years) x .1061 Annuity factor (10% at 30 years)
$ 43.29 Net annual equivalent $ 30.91 Net annual equivalent

*PV= Present Value



The two calculations illustrated above emphasize the eco- ample a site quality of 70 generally produces an increase in
nomic sensitivity of the change in percentage rates for com- yield of 10 to 15 percent over a site quality 60.
pounding, discounting and computing annuities. A 25% The same assumptions hold true in this example that
increase in discount rates (8% to 10%) applied to an identical were used previously However, increased yield changes are
situation otherwise reduced the adjusted annuity from $43.29 as follows:
to $30.91 a reduction of 25%.
Discount rates of 12 and 14 percent continue to reduce the Site Quality 70 Yields
NAE. Net present value and NAE are $174.65 and $21.68 (15 years) 11.1 cords
for 12 percent and $104.13 and $14.87 for 14 percent. (20 years) 5.8 cords
Higher site qualities also have an effect on the NAE. A (25 years) 1.8 cord, 1.460 MBF
higher site quality results in a higher yield, and in this ex- (30 years) 4.9 cords, 9.844 MBF


5









Computing these yields through the equations using involved in timber production. The investment tax credit of
various interest rates resulted in the values below: 10% of the investment cost (not to exceed $10,000) be-
Values for Site Quality 70 comes applicable the year of planting. A portion of the in-
Net Net vestment cost (14), is also deducted from gross income the
Discount Present Annual same year. For the following six years, /7 is deducted from
Rate (%) Value Equivl. gross income, and in the seventh year, /14 is deducted. The
8.0 719.09 63.87 reforestation expense is deducted over a seven-year period
10.0 447.44 4 6 instead of when the timber is cut. This allows money to be
10.0 447.44 47.46
12.0 282.09 35.02 used for other purposes that would otherwise be tied up in
the investment.
14.0 179.48 25.63 the investment.

Example Using Equation 2 Conclusion
The primary objective of this publication is to encourage
To determine the NAE of a pine stand with a single sale, imera er or active of ons to ather eco
timberland owners or prospective owners to gather eco-
Equation 2 is used. The example is based on a 25 year clear- i and production p to g r
Snomic and production facts related to their current or pro-
cut rotation using an 8% discount rate. Computations are
illustrated below: posed timber enterprise. The material is not presented to
promote or discourage investments in timber production. It
Situation is an objective and functional procedure to assist landowners
1. $12.25 net establishment costs after incentive benefits in evaluating investment opportunities.
2. 32.8 cords and 1.277 MBF yield at 25 years Data in this analysis can help in basic decision making, but
3. $67.20/cord and $380.54/MBF anticipated price other factors should also be considered. Some of these
Computation factors may include annual cash flow needs, present and fu-
1. 32.8 cords x ture needs for cash, and effectiveness of erosion control in
$67.20/cord = $2204.16 pine stands.
2. 1.277 MBF x
$380.54 = $ 485.95
2690.11 83.89(12.25 x References
6.848)
t6.84) Clutter, J. L., and E. P. Jones, Jr. 1980. Prediction of growth
est. cost compounded at
Sc c after thinning of old-field slash pine plantations. USDA
$2606.22 Forest Service, SE-217.
S$2606.22 + 6 dou fo for 2 y a Forest Industries Committee on Timber Valuation and Tax-
3. $2606.22 6.848 discount factor for 25 years at 8% = ation, "The New Reforestation ax Incentives," 1250
$380.58 ation, "The New Reforestation Fax Incentives," 1250
$380.58 Connecticut Avenue, N. W, Washington, D.C.
4. $380.58 x .09368 annuity factor for 25 years at 8% = Connecticut Avenue, N.W, Washington, D.C.
$385.65 Annual Anuity for 25 years. Holmes, Mac R., andJohn E. Waldrop, Jr., March 1971, "An
5. $35.65 less $2.00 annual charge for management, fire Application of Quantitative Economic Analysis to Timber
5. $35.65 less $2.00 annual charge for management, fire Production Scheduling Problems," Technical Bulletin 62,
Production Scheduling Problems," Technical Bulletin 62,
control measure and risk associated with pest and wild- agricultural and orestr eri
fire damage = $33.65 Net Annual Equivalent. Agricultural and Forestry Experiment Station, Missis-
fire damage = $33.65 Net Annual Equivalent. sippi State University
sippi State University
Tax Treatment of Pines School of Forest Resources and Conservation, "Forestry as
an Investment Alternative," Extension Update, Florida
Unlike corn and soybeans, pines have some important tax Cooperative Extension Service, University of Florida,
advantages which are not in the previous analyses that trans- Gainesville.
late into higher after tax returns as is shown in Table 10. The Smith, O. Cecil, and C. Nelson Brightwell, February 1979,
capital gains exclusion exempts 60 percent of the return on "The Economics of Pine Pulpwood Production in Planted
timber from federal income tax. The exemption is actually a Stands," Miscellaneous Publication No. 76, Cooperative
break given to the investor in return for the long-term risk Extension Service, University of Georgia, Athens.










6









Computing these yields through the equations using involved in timber production. The investment tax credit of
various interest rates resulted in the values below: 10% of the investment cost (not to exceed $10,000) be-
Values for Site Quality 70 comes applicable the year of planting. A portion of the in-
Net Net vestment cost (14), is also deducted from gross income the
Discount Present Annual same year. For the following six years, /7 is deducted from
Rate (%) Value Equivl. gross income, and in the seventh year, /14 is deducted. The
8.0 719.09 63.87 reforestation expense is deducted over a seven-year period
10.0 447.44 4 6 instead of when the timber is cut. This allows money to be
10.0 447.44 47.46
12.0 282.09 35.02 used for other purposes that would otherwise be tied up in
the investment.
14.0 179.48 25.63 the investment.

Example Using Equation 2 Conclusion
The primary objective of this publication is to encourage
To determine the NAE of a pine stand with a single sale, imera er or active of ons to ather eco
timberland owners or prospective owners to gather eco-
Equation 2 is used. The example is based on a 25 year clear- i and production p to g r
Snomic and production facts related to their current or pro-
cut rotation using an 8% discount rate. Computations are
illustrated below: posed timber enterprise. The material is not presented to
promote or discourage investments in timber production. It
Situation is an objective and functional procedure to assist landowners
1. $12.25 net establishment costs after incentive benefits in evaluating investment opportunities.
2. 32.8 cords and 1.277 MBF yield at 25 years Data in this analysis can help in basic decision making, but
3. $67.20/cord and $380.54/MBF anticipated price other factors should also be considered. Some of these
Computation factors may include annual cash flow needs, present and fu-
1. 32.8 cords x ture needs for cash, and effectiveness of erosion control in
$67.20/cord = $2204.16 pine stands.
2. 1.277 MBF x
$380.54 = $ 485.95
2690.11 83.89(12.25 x References
6.848)
t6.84) Clutter, J. L., and E. P. Jones, Jr. 1980. Prediction of growth
est. cost compounded at
Sc c after thinning of old-field slash pine plantations. USDA
$2606.22 Forest Service, SE-217.
S$2606.22 + 6 dou fo for 2 y a Forest Industries Committee on Timber Valuation and Tax-
3. $2606.22 6.848 discount factor for 25 years at 8% = ation, "The New Reforestation ax Incentives," 1250
$380.58 ation, "The New Reforestation Fax Incentives," 1250
$380.58 Connecticut Avenue, N. W, Washington, D.C.
4. $380.58 x .09368 annuity factor for 25 years at 8% = Connecticut Avenue, N.W, Washington, D.C.
$385.65 Annual Anuity for 25 years. Holmes, Mac R., andJohn E. Waldrop, Jr., March 1971, "An
5. $35.65 less $2.00 annual charge for management, fire Application of Quantitative Economic Analysis to Timber
5. $35.65 less $2.00 annual charge for management, fire Production Scheduling Problems," Technical Bulletin 62,
Production Scheduling Problems," Technical Bulletin 62,
control measure and risk associated with pest and wild- agricultural and orestr eri
fire damage = $33.65 Net Annual Equivalent. Agricultural and Forestry Experiment Station, Missis-
fire damage = $33.65 Net Annual Equivalent. sippi State University
sippi State University
Tax Treatment of Pines School of Forest Resources and Conservation, "Forestry as
an Investment Alternative," Extension Update, Florida
Unlike corn and soybeans, pines have some important tax Cooperative Extension Service, University of Florida,
advantages which are not in the previous analyses that trans- Gainesville.
late into higher after tax returns as is shown in Table 10. The Smith, O. Cecil, and C. Nelson Brightwell, February 1979,
capital gains exclusion exempts 60 percent of the return on "The Economics of Pine Pulpwood Production in Planted
timber from federal income tax. The exemption is actually a Stands," Miscellaneous Publication No. 76, Cooperative
break given to the investor in return for the long-term risk Extension Service, University of Georgia, Athens.










6









Computing these yields through the equations using involved in timber production. The investment tax credit of
various interest rates resulted in the values below: 10% of the investment cost (not to exceed $10,000) be-
Values for Site Quality 70 comes applicable the year of planting. A portion of the in-
Net Net vestment cost (14), is also deducted from gross income the
Discount Present Annual same year. For the following six years, /7 is deducted from
Rate (%) Value Equivl. gross income, and in the seventh year, /14 is deducted. The
8.0 719.09 63.87 reforestation expense is deducted over a seven-year period
10.0 447.44 4 6 instead of when the timber is cut. This allows money to be
10.0 447.44 47.46
12.0 282.09 35.02 used for other purposes that would otherwise be tied up in
the investment.
14.0 179.48 25.63 the investment.

Example Using Equation 2 Conclusion
The primary objective of this publication is to encourage
To determine the NAE of a pine stand with a single sale, imera er or active of ons to ather eco
timberland owners or prospective owners to gather eco-
Equation 2 is used. The example is based on a 25 year clear- i and production p to g r
Snomic and production facts related to their current or pro-
cut rotation using an 8% discount rate. Computations are
illustrated below: posed timber enterprise. The material is not presented to
promote or discourage investments in timber production. It
Situation is an objective and functional procedure to assist landowners
1. $12.25 net establishment costs after incentive benefits in evaluating investment opportunities.
2. 32.8 cords and 1.277 MBF yield at 25 years Data in this analysis can help in basic decision making, but
3. $67.20/cord and $380.54/MBF anticipated price other factors should also be considered. Some of these
Computation factors may include annual cash flow needs, present and fu-
1. 32.8 cords x ture needs for cash, and effectiveness of erosion control in
$67.20/cord = $2204.16 pine stands.
2. 1.277 MBF x
$380.54 = $ 485.95
2690.11 83.89(12.25 x References
6.848)
t6.84) Clutter, J. L., and E. P. Jones, Jr. 1980. Prediction of growth
est. cost compounded at
Sc c after thinning of old-field slash pine plantations. USDA
$2606.22 Forest Service, SE-217.
S$2606.22 + 6 dou fo for 2 y a Forest Industries Committee on Timber Valuation and Tax-
3. $2606.22 6.848 discount factor for 25 years at 8% = ation, "The New Reforestation ax Incentives," 1250
$380.58 ation, "The New Reforestation Fax Incentives," 1250
$380.58 Connecticut Avenue, N. W, Washington, D.C.
4. $380.58 x .09368 annuity factor for 25 years at 8% = Connecticut Avenue, N.W, Washington, D.C.
$385.65 Annual Anuity for 25 years. Holmes, Mac R., andJohn E. Waldrop, Jr., March 1971, "An
5. $35.65 less $2.00 annual charge for management, fire Application of Quantitative Economic Analysis to Timber
5. $35.65 less $2.00 annual charge for management, fire Production Scheduling Problems," Technical Bulletin 62,
Production Scheduling Problems," Technical Bulletin 62,
control measure and risk associated with pest and wild- agricultural and orestr eri
fire damage = $33.65 Net Annual Equivalent. Agricultural and Forestry Experiment Station, Missis-
fire damage = $33.65 Net Annual Equivalent. sippi State University
sippi State University
Tax Treatment of Pines School of Forest Resources and Conservation, "Forestry as
an Investment Alternative," Extension Update, Florida
Unlike corn and soybeans, pines have some important tax Cooperative Extension Service, University of Florida,
advantages which are not in the previous analyses that trans- Gainesville.
late into higher after tax returns as is shown in Table 10. The Smith, O. Cecil, and C. Nelson Brightwell, February 1979,
capital gains exclusion exempts 60 percent of the return on "The Economics of Pine Pulpwood Production in Planted
timber from federal income tax. The exemption is actually a Stands," Miscellaneous Publication No. 76, Cooperative
break given to the investor in return for the long-term risk Extension Service, University of Georgia, Athens.










6









Computing these yields through the equations using involved in timber production. The investment tax credit of
various interest rates resulted in the values below: 10% of the investment cost (not to exceed $10,000) be-
Values for Site Quality 70 comes applicable the year of planting. A portion of the in-
Net Net vestment cost (14), is also deducted from gross income the
Discount Present Annual same year. For the following six years, /7 is deducted from
Rate (%) Value Equivl. gross income, and in the seventh year, /14 is deducted. The
8.0 719.09 63.87 reforestation expense is deducted over a seven-year period
10.0 447.44 4 6 instead of when the timber is cut. This allows money to be
10.0 447.44 47.46
12.0 282.09 35.02 used for other purposes that would otherwise be tied up in
the investment.
14.0 179.48 25.63 the investment.

Example Using Equation 2 Conclusion
The primary objective of this publication is to encourage
To determine the NAE of a pine stand with a single sale, imera er or active of ons to ather eco
timberland owners or prospective owners to gather eco-
Equation 2 is used. The example is based on a 25 year clear- i and production p to g r
Snomic and production facts related to their current or pro-
cut rotation using an 8% discount rate. Computations are
illustrated below: posed timber enterprise. The material is not presented to
promote or discourage investments in timber production. It
Situation is an objective and functional procedure to assist landowners
1. $12.25 net establishment costs after incentive benefits in evaluating investment opportunities.
2. 32.8 cords and 1.277 MBF yield at 25 years Data in this analysis can help in basic decision making, but
3. $67.20/cord and $380.54/MBF anticipated price other factors should also be considered. Some of these
Computation factors may include annual cash flow needs, present and fu-
1. 32.8 cords x ture needs for cash, and effectiveness of erosion control in
$67.20/cord = $2204.16 pine stands.
2. 1.277 MBF x
$380.54 = $ 485.95
2690.11 83.89(12.25 x References
6.848)
t6.84) Clutter, J. L., and E. P. Jones, Jr. 1980. Prediction of growth
est. cost compounded at
Sc c after thinning of old-field slash pine plantations. USDA
$2606.22 Forest Service, SE-217.
S$2606.22 + 6 dou fo for 2 y a Forest Industries Committee on Timber Valuation and Tax-
3. $2606.22 6.848 discount factor for 25 years at 8% = ation, "The New Reforestation ax Incentives," 1250
$380.58 ation, "The New Reforestation Fax Incentives," 1250
$380.58 Connecticut Avenue, N. W, Washington, D.C.
4. $380.58 x .09368 annuity factor for 25 years at 8% = Connecticut Avenue, N.W, Washington, D.C.
$385.65 Annual Anuity for 25 years. Holmes, Mac R., andJohn E. Waldrop, Jr., March 1971, "An
5. $35.65 less $2.00 annual charge for management, fire Application of Quantitative Economic Analysis to Timber
5. $35.65 less $2.00 annual charge for management, fire Production Scheduling Problems," Technical Bulletin 62,
Production Scheduling Problems," Technical Bulletin 62,
control measure and risk associated with pest and wild- agricultural and orestr eri
fire damage = $33.65 Net Annual Equivalent. Agricultural and Forestry Experiment Station, Missis-
fire damage = $33.65 Net Annual Equivalent. sippi State University
sippi State University
Tax Treatment of Pines School of Forest Resources and Conservation, "Forestry as
an Investment Alternative," Extension Update, Florida
Unlike corn and soybeans, pines have some important tax Cooperative Extension Service, University of Florida,
advantages which are not in the previous analyses that trans- Gainesville.
late into higher after tax returns as is shown in Table 10. The Smith, O. Cecil, and C. Nelson Brightwell, February 1979,
capital gains exclusion exempts 60 percent of the return on "The Economics of Pine Pulpwood Production in Planted
timber from federal income tax. The exemption is actually a Stands," Miscellaneous Publication No. 76, Cooperative
break given to the investor in return for the long-term risk Extension Service, University of Georgia, Athens.










6









Table 10. Capital gains exclusion and investment tax credit for thinning slash pines at 15, 20, 25 years and
clear-cutting at 30 years, for site quality 60.

Invested Sum1 $ 34.77
15-Year Return (4.5 cords) 215.15
Less Investment Recovery 34.77
Total Gain 180.38
Capital Gains Exclusion (60%) 108.23
Taxable Gain 72.15
Less Income Tax @ 25%2 18.04
Balance After Taxes 54.11
Plus Capital Gains Exclusion (60%) 108.23
Plus Investment Tax Credit (10%) 3.48
Gain After Federal Tax 165.82
20-Year Return (4.7 cords) 254.22
Capital Gains Exclusion (60%) 152.53
Taxable Gain 101.69
Less Income Tax @ 25%2 25.42
Balance After Taxes 76.27
Plus Capital Exclusion 152.53
Gain After Taxes 228.80
25-Year Return (Pulpwood) 4.6 cords 309.12
Capital Gains Exclusion (60%) 185.47
Taxable Gain 123.65
Less Income Tax @ 25%2 30.91
Balance After Taxes 92.74
Plus Capital Gains Exclusion (60%) 185.47
Gain After Taxes 278.21
30-Year Return (Sawtimber) 7.054 MBF 3037.10
30-Year Return (Pulpwood) 7.7 cords 533.15
Total 30-Year Return 3570.25
Capital Gains Exclusion (60%) 2142.15
Taxable Gain 1428.10
Less Income Tax @ 25%2 357.02
Balance After Taxes 1071.08
Plus Capital Gains Exclusion (60%) 2142.15
Gains After Taxes 3213.23
Grand Total Gain After Taxes $3886.06
'Includes present value of annual cost for 30 years at 8 percent plus the
stand establishment costs [(2.00 .0888) + 12.25 = 34.77]
2Assumes a 25% Federal Income Tax Rate.
















7










Appendix Table 1. (Compounding and Discounting Factors) FUTURE VALUE OF $1
ANNUAL RATES
Years 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18%

1 1.060 1.070 1.080 1.090 1.110 1.110 1.120 1.130 1.140 1.150 1.160 1.170 1.180
2 1.124 1.145 1.166 1.118 1.210 1.232 1.254 1.277 1.300 1.323 1.346 1.369 1.392
3 1.191 1.225 1.260 1.295 1.331 1.368 1.405 1.443 1.482 1.521 1.561 1.602 1.643
4 1.262 1.311 1.360 1.412 1.464 1.518 1.574 1.630 1.689 1.749 1.811 1.874 1.939
5 1.338 1.403 1.469 1.539 1.611 1.685 1.762 1.842 1.925 2.011 2.100 2.192 2.288
6 1.419 1.501 1.587 1.677 1.772 1.870 1.974 2.082 2.195 2.313 2.436 2.565 2.700
7 1.504 1.606 1.714 1.828 1.949 2.076 2.211 2.353 2.502 2.660 2.826 3.001 3.185
8 1.594 1.718 1.851 1.993 2.144 2.305 2.476 2.658 2.853 3.059 3.278 3.511 3.759
9 1.689 1.838 1.999 2.172 2.358 2.558 2.773 3.004 3.252 3.518 3.803 4.108 4.435
10 1.701 1.967 2.159 2.367 2.594 2.839 3.106 3.395 3.707 4.046 4.411 4.807 5.234
11 1.898 2.105 2.332 2.580 2.853 3.152 3.479 3.836 4.226 4.652 5.117 5.624 6.176
12 2.012 2.252 2.518 2.813 3.138 3.498 3.896 4.335 4.818 5.350 5.936 6.580 7.285
13 2.133 2.410 2.720 3.066 3.452 3.883 4.363 4.898 5.492 6.153 6.886 7.699 8.599
14 2.260 2.579 2.937 3.342 3.797 4.310 4.887 5.535 6.261 7.076 7.988 9.077 10.147
15 2.397 2.759 3.172 3.642 4.177 4.785 5.474 6.254 7.138 8.137 9.266 10.539 11.974
16 2.540 2.952 3.426 3.970 4.595 5.311 6.130 7.067 8.137 9.358 10.748 12.330 14.129
17 2.693 3.158 3.700 4.328 5.054 5.895 6.866 7.986 9.276 10.761 12.468 14.426 16.672
18 2.854 3.380 3.996 4.717 5.560 6.544 7.690 9.024 10.575 12.375 14.463 16.879 19.673
19 3.026 3.617 4.316 5.142 6.116 7.263 8.613 10.197 12.056 14.232 16.777 19.748 23.214
20 3.207 3.870 4.661 5.604 6.728 8.062 9.646 11.523 13.743 16.367 19.461 23.106 27.393
21 3.400 4.141 5.034 6.109 7.400 8.949 10.804 13.021 15.668 18.822 22.574 27.034 32.324
22 3.604 4.430 5.437 6.659 9.934 12.100 14.714 17.861 21.645 26.186 31.629 31.629 38.142
23 3.820 4.741 5.871 7.258 8.954 11.026 13.552 16.627 20.362 24.891 30.376 37.006 45.008
24 4.049 5.072 6.341 7.911 9.850 12.239 15.179 18.788 23.212 28.625 35.236 43.297 53.109
25 4.292 5.427 6.848 8.623 10.835 13.585 17.000 21.231 26.462 32.919 40.874 50.658 62.669
26 4.459 5.807 7.396 9.399 11.918 15.080 19.040 23.991 30.167 37.857 47.414 59.270 73.949
27 4.822 6.214 7.988 10.245 13.110 16.739 21.325 27.109 34.490 43.535 55.000 69.345 87.260
28 5.112 6.649 8.627 11.167 14.421 18.580 23.884 30.663 39.204 50.066 63.800 81.134 102.967
29 5.418 7.114 9.317 12.172 15.863 20.624 26.750 34.616 44.693 57.575 74.009 94.927 121.501
30 5.743 7.612 10.063 13.268 17.449 22.892 29.960 39.116 50.950 66.212 85.850 111.065 143.671
32 6.453 8.715 11.737 15.763 21.114 28.206 37.582 49.947 66.215 87.565 115.520 152.036 199.629
34 7.251 9.978 13.690 18.728 25.548 34.752 47.143 63.777 86.053 115.805 155.443 208.123 277.964
36 8.147 11.424 15.968 22.251 30.913 42.818 59.136 81.437 111.834 153.152 209.164 284.899 387.037
38 9.154 13.079 18.625 26.437 37.404 52.756 74.180 103.987 145.340 202.543 281.452 389.998 538.910
40 10.286 14.974 21.725 31.409 45.259 65.001 93.051 132.782 188.884 267.864 378.721 533.869 750.378

















8









Appendix Table 2. (Annuity Factors) ANNUAL ANNUITY FOR PRESENT VALUE OF $1
ANNUAL RATES
Years 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20%

2 .5608 .5685 .5762 .5839 .5917 .5995 .6073 .6151 .6230 .6308 .6387 .6466 .6545
3 .3880 .3951 .4021 .4092 .4163 .4235 .4307 .4380 .4453 .4526 .4599 .4673 .4747
4 .3019 .3087 .3155 .3223 .3292 .3362 .3432 .3503 .3574 .3645 .3717 .3790 .3863
5 .2505 .2571 .2638 .2706 .2774 .2843 .2913 .2983 .3054 .3126 .3198 .3271 .3344
6 .2163 .2229 .2296 .2364 .2432 .2502 .2572 .2642 .2714 .2786 .2859 .2933 .3007
7 .1921 .1987 .2054 .2122 .2191 .2261 .2332 .2404 .2476 .2549 .2624 .2699 .2774
8 .1740 .1807 .1874 .1943 .2013 .2084 .2156 .2229 .2302 .2377 .2452 .2529 .2609
9 .1601 .1668 .1736 .1806 .1877 .1949 .2022 .2096 .2171 .2247 .2324 .2402 .2481
10 .1490 .1558 .1627 .1698 .1770 .1843 .1917 .1993 .2069 .2147 .2225 .2305 .2835
11 .1401 .1460 .1540 .1611 .1684 .1759 .1834 .1911 .1989 .2068 .2148 .2229 .2311
12 .1327 .1397 .1468 .1540 .1614 .1690 .1767 .1845 .1924 .2005 .2086 .2169 .2253
13 .1265 .1336 .1408 .1482 .1557 .1634 .1712 .1791 .1872 .1954 .2037 .2121 .2206
14 .1213 .1284 .1357 .1432 .1509 .1587 .1666 .1747 .1829 .1912 .1997 .2082 .2169
15 .1168 .1241 .1315 .1391 .1468 .1547 .1628 .1710 .1794 .1878 .1964 .2051 .2139
16 .1130 .1203 .1278 .1355 .1434 .1514 .1596 .1679 .1764 .1850 .1937 .2025 .2114
17 .1096 .1170 .1247 .1325 .1405 .1569 .1654 .1740 .1827 .1915 .2004 .2004 .2094
18 .1067 .1142 .1219 .1298 .1379 .1462 .1546 .1632 .1719 .1807 .1896 .1987 .2078
19 .1041 .1117 .1195 .1276 .1358 .1441 .1527 .1613 .1701 .1791 .1881 .1972 .2065
20 .1019 .1095 .1175 .1256 .1339 .1424 .1510 .1598 .1687 .1777 .1868 .1950 .2054
21 .0998 .1076 .1156 .1238 .1322 .1408 .1495 .1584 .1674 .1765 .1857 .1951 .2044
22 .0980 .1059 .1140 .1223 .1308 .1395 .1483 .1573 .1664 .1756 .1848 .1942 .2037
23 .0964 .1044 .1126 .1210 .1296 .1383 .1472 .1563 .1654 .1747 .1841 .1935 .2031
24 .0950 .1030 .1113 .1198 .1285 .1373 .1463 .1554 .1647 .1740 .1835 .1930 .2025
25 .0937 .1018 .1102 .1187 .1275 .1364 .1455 .1547 .1640 .1734 .1829 .1925 .2021
26 .0925 .1007 .1092 .1178 .1267 .1357 .1448 .1541 .1634 .1729 .1825 .1921 .2018
27 .0914 .0997 .1083 .1170 .1259 .1350 .1442 .1535 .1630 .1725 .1821 .1918 .2015
28 .0905 .0989 .1075 .1163 .1252 .1343 .1437 .1531 .1625 .1721 .1818 .1915 .2012
29 .0896 .0981 .1067 .1156 .1247 .1339 .1432 .1527 .1622 .1718 .1815 .1912 .2010
30 .0888 .0973 .1061 .1150 .1241 .1334 .1428 .1523 .1619 .1715 .1813 .1910 .2008
32 .0875 .0961 .1050 .1140 .1233 .1327 .1421 .1517 .1616 .1711 .1809 .1907 .2006
34 .0863 .0951 .1041 .1133 .1226 .1321 .1416 .1513 .1614 .1708 .1807 .1905 .2004
36 .0853 .0942 .1033 .1126 .1221 .1316 .1413 .1510 .1612 .1706 .1805 .1904 .2003
38 .0845 .0935 .1027 .1121 .1216 .1313 .1410 .1507 .1610 .1704 .1803 .1903 .2002
40 .0839 .0930 .1023 .1117 .1213 .1310 .1407 .1506 .1609 .1703 .1802 .1902 .2001


















9












































































This public document was promulgated at a cost of $1272.46, or 5.8 cents per copy, to provide current information on
costs and returns from producing pines, soybeans, and other annual crops. 7-2.5M-84


COOPERATIVE EXTENSION SERVICE, UNIVERSITY OF FLORIDA, INSTITUTE OF FOOD AND AGRICULTURAL
SCIENCES, K. R. Tefertiller, director, In cooperation with the United States Department of Agriculture, publishes this Infor-
mation to further the purpose of the May 8 and June 30, 1914 Acts of Congress;and Is authorized to provide research, educa- i ii
tional Information and other services only to Individuals and Institutions that function without regard to race, color, sex or
national origin. Single copies of Extension publications (excluding 4-H and Youth publications) are available free to Florida
residents from County Extension Offices. Information on bulk rates or copies for out-of-state purchasers is available from
C. M. Hinton, Publications Distribution Center, IFAS Building 664, University of Florida, Galnesvllle, Florida 32611. Before publicizing this
publication, editors should contact this address to determine availability.




University of Florida Home Page
© 2004 - 2010 University of Florida George A. Smathers Libraries.
All rights reserved.

Acceptable Use, Copyright, and Disclaimer Statement
Last updated October 10, 2010 - - mvs