Estimating Land Expectation Value of Smallholder Farmers’ Eucalyptus Woodlot Products in Wogera District, Northern Ethiopia

Background: The area of Eucalyptus plantations has expanded greatly and the species dominates many rural and urban landscapes as it suits the limited resources of smallholder farmers, yields higher income than other tree crops and increasing demand for woodlot products. The study conducted in Wogera District within three purposively selected kebele administrations. Smallholder farmers at the study area are converting their crop land to Eucalyptus plantation. Therefore there should need to deal the pushing factors for the allocation of Eucalyptus. This study aims at identifying the factors influencing decision of land allocation for eucalyptus woodlot production, and estimating the land expectation value. Method: Cross sectional data was collected through semi-structured interview schedule. Data analysis employed descriptive statistics and Faustman formula. Results: The results of the household survey revealed that land degradation and neighbor influence are the main factors for smallholders’ land allocation decision for Eucalyptus plantation. Therefore, as per the results, most of the crop land has been converted to Eucalyptus plantation. However, this a rapid land conversion issue made a threat on most farmers in related to losing of indigenous crops so as it leads them to be food insecured. Conclusion: Farmers in the study area are rational in their land allocation for production of either annual or perennial crops including Eucalyptus woodlots. Finally the study recommends government intervention in the separate land management issue is mandatory to make balance in production of both Eucalyptus and crops.

Heuristic Optimization of Thinning Individual Douglas-Fir

Research Highlights: (1) Optimizing mid-rotation thinning increased modeled land expectation values by as much as 5.1–10.1% over a representative reference prescription on plots planted at 2.7 and 3.7 m square spacings. (2) Eight heuristics, five of which were newly applied to selecting individual trees for thinning, produced thinning prescriptions of near identical quality. (3) Based on heuristic sampling properties, we introduced a variant of the hero heuristic with a 5.3–20% greater computational efficiency. Background and Objectives: Thinning, which is arguably the most subjective human intervention in the life of a stand, is commonly executed with limited decision support in tree selection. This study evaluated heuristics’ ability to support tree selection in a factorial experiment that considered the thinning method, tree density, thinning age, and rotation length. Materials and Methods: The Organon growth model was used for the financial optimization of even age Douglas-fir (Pseudotsuga menziesii (Mirb.) Franco) harvest rotations consisting of a single thinning followed by clearcutting on a high-productivity site. We evaluated two versions of the hero heuristic, four Monte Carlo heuristics (simulated annealing, record-to-record travel, threshold accepting, and great deluge), a genetic algorithm, and tabu search for their efficiency in maximizing land expectation value. Results: With 50–75 years rotations and a 4% discount rate, heuristic tree selection always increased land expectation values over other thinning methods. The two hero heuristics were the most computationally efficient methods. The four Monte Carlo heuristics required 2.8–3.4 times more computation than hero. The genetic algorithm and the tabu search required 4.2–8.4 and 21–52 times, respectively, more computation than hero. Conclusions: The accuracy of the resulting thinning prescriptions was limited by the quality of stand measurement, and the accuracy of the growth and yield models was linked to the heuristics rather than to the choice of heuristic. However, heuristic performance may be sensitive to the chosen models.

A Discounted Cash Flow and Capital Budgeting Analysis of Silvopastoral Systems in the Amazonas Region of Peru

Silvopasture is a type of agroforestry that could deliver ecosystem services and support local livelihoods by integrating trees into pasture-based livestock systems. This study modeled the financial returns from silvopastures, planted forests, and conventional cattle-pasture systems in Amazonas, Peru using capital budgeting techniques. Forests had a lower land expectation value (USD 845 per hectare) than conventional cattle systems (USD 1275 per hectare) at a 4% discount rate. “Typical” model silvopastures, based on prior landowner surveys in the Amazonas region, were most competitive at low discount rates. The four actual silvopastoral systems we visited and examined had higher returns (4%: USD 1588 to USD 9524 per hectare) than either alternative pure crop or tree system, more than likely through strategies for generating value-added such as on-site retail stands. Silvopasture also offers animal health and environmental benefits, and could receive governmental or market payments to encourage these practices.

What is the Value of an Existing Forest Stand?

Traditionally, the land expectation value (LEV) formula, the present value of perpetual cash inflows of timber revenues minus the present value of cash outflows of costs, has been employed as the main indicator of the value of a forest investment. However, when a forest stand is already established, the LEV approach is incomplete because it applies only to bare land. Thus, it is necessary to determine the value of a property with an existing forest stand. This 3-page fact sheet written by Andres Susaeta and Chris Demers and published by the UF/IFAS School of Forest Resources and Conservation provides the formula to determine the value of an already established forest stand at any stage of its development. This approach, known as the forest value formula, includes the value of the timber and the land. It can be used to compare the value of the stand when it is immediately harvested or when it is economically immature. http://edis.ifas.ufl.edu/fr423

The Optimal Forest Management of an Even-Aged Stand: The Biological Rotation versus the Land Expectation Value

This 4-page fact sheet written by Andres Susaeta and Chris Demers and published by the UF/IFAS School of Forest Resources and Conservation provides a guide for forest landowners, managers, and stakeholders in conducting a valuation of timber investments. It reviews and provides examples of two different approaches for determining the optimal rotation age of even-aged forest stands. These methods can help forest landowners and managers in making forestry investment decisions. https://edis.ifas.ufl.edu/fr424

Evaluating the Most Suitable Tree Species Using Land Expectation Value: A Case Study from Plantation in North of Iran

Plantation in north of Iran is rapidly increasing by local farmers and state but it is not clear which species is most suitable for perpetual timber production. Thus, this study is carried out to evaluate the most suitable timber species among ash (Fraxinus excelsior), elm (Alnus glutinosa), maple (Acer velutinum), oak (Quercus castanifolia), bald cypress (Taxodium distichumin) in north of Iran for evaluation of most suitability using Land Expectation Value (LEV). Data such as wood price at forest road side and variable harvesting cost was collected from secondary souce especially General Office of Natural Resources in Guilan province for a period of 20 years. Average annual increment of different species derived from previous researches. Consumer Price Index (CPI) was used for deflation of stumpage price. Regression analysis was used to predict the stumpage price of different species. Then, the mean price process was determined for different species. Faustmann's formula was used to determine the LEV or Net Present Value (NPV) for a perpetual timber production of different species. The results showed that the LEV of ash, elm, maple, oak and bald cypress were 2623.883, 4653.042, 4319.9644, 2206.8788, 8064.667 (0.33 US dollar/ m3), respectively. The LEV of bald cypress was the highest, so it can be concluded that this species is the most suitable for timber production.

ECONOMIC PERFORMANCE OF LOBLOLLY PINE STANDS IN SOUTHERN BRAZIL AS A RESULT OF DIFFERENT CROWN THINNING INTENSITIES1

ABSTRACT Approximately 1.6 million hectares of southern Brazil are cultivated with pines, and mainly with the loblolly pine (Pinus taeda L.). More than one third of the stands belong to independent log producers, whose aim is to maximize their economic results. In this study, a thinning experiment was evaluated over a production period of 30 years. The stands evaluated were submitted to three different crown thinning intensities, with an unthinned stand used as a control. The aim of the study was to evaluate economic criteria regarding realistic discount rates and production periods varying between 16-30 years. For the circumstances that were evaluated, 'extreme' and early release from competition of pruned loblolly pine trees lead to the best economic performance (land expectation value = ~36,000 US$ ha-1, i = 3% yr-1). Stands subjected to crown thinnings, independently of intensity, produced three times the economic output of unthinned and unpruned stands. Although the optimal harvest ages, according to the internal rate of return, are between 18-22 years for thinned and unthinned stands, from a long-term perspective (land expectation value) and for the current relationship between log price and size, the optimal economic performance requires that production periods are extended (to 24-26 years) from those currently practised in southern Brazil (15-20 years).