Why is the Timber Industry Over Harvesting Their Lands?
By Russell Bartley and Sylvia Yoneda – Noyo Hill House, December 1990, reprinted in Forest Practices, the Timber Industry, and the North Coast. The answer is simple. Forests don’t grow fast enough. According to figures released by the California Department of Forestry’s Forest and Rangeland Resources Assessment Program (FRRAP), the average growth on California’s industrial timberlands is only 2.2 to 2.4 percent. Figures from Hammon, Jenson, and Wallen Associates put the figure at 2.8% Since most investors expect returns of 8 to 10% or more, it is clear that a forest managed for growth only is a poor investment.[1] The fastest way to boost short term earnings is by liquidating the existing inventory through over harvesting. Simply put, industry’s solution to low returns is to cut more than they are growing. It’s a lot like continuously borrowing from a savings account because the interest on the account is low. Unfortunately, the more you borrow, the less income the account produces. An
Related Questions
- What is the policy for forestry and agricultural lands under conservation easements; i.e. can a landowner still harvest the timber, and what farming practices would be acceptable?
- How does Minnesota’s timber industry rank in the state’s industrial hierarchy?
- Why is the Timber Industry Over Harvesting Their Lands?
