Tree Farmer - May/June 2008 - (Page 22)

By Reynolds RF, SR, ACF TEDDY Increasing Your Returns Increasing pine plantation returns becomes increasingly imperative in depressed markets. Understanding and effectively managing the variables that increase yields and shorten rotations while controlling cost is the solution. In a depressed market, when plantation yields are increased and rotation lengths shortened, the real internal rate of return (IRR) can be maintained or increased depending on the effectiveness of the landowner and manager. 2. Water; and 3. Nutrients. We manage the primary variables by successfully implementing the secondary variables listed below: • Tillage (subsoil and bed); • Genetics (open, control and cloned); • Interspecies competition (herbaceous and woody species); • Intraspecies competition (volunteer pine); and • Fertilization (nitrogen, phosphorus and boron). The secondary variables are described below based on their influence on the primary variables. 1. Sunlight is managed by controlling the interspecies and intraspecies competition. Sunlight is transmitted through photons in the air and absorbed by needles creating adenosine triphosphate (ATP), which is the molecular currency of energy transfer. Sunlight is managed by controlling the spacing and number of trees per Teddy Reynolds is president of Reynolds Forestry Consulting in Magnolia, Arkansas. His awardwinning radio program, Timber Talk, can be heard at . timber talk 22 in Depressed Markets Tillie and Ben Farmer of Lone Star, Texas, with their high-yield 7year-old plantation. Your pine plantation IRR is influenced by four variables: 1) Cost (capital investment); 2) Yield (tons/acre/year); 3) Price ($/ton); and 4) Time (rotation). As a landowner and manager, your job is to: • Decrease the cost; • Increase the yield; and • Decrease the time. A typical acre of timberland can produce four tons/acre/year of wood products with minimum management and more than eight tons/acre/year of wood products with maximum management. An example of increasing your returns in depressed markets by increasing your management is illustrated in Chart 1; with lower prices the real internal return rate increased from 11.7 to 12 percent. The primary variables for increasing yields are: 1. Sunlight; Tree Farmer MAY/JUNE 2008 http://www.timbertalk.com

Table of Contents for the Digital Edition of Tree Farmer - May/June 2008

Tree Farmer - May/June 2008
Contents
Sharing Your Experiences
Cover Story
Botanicals: Marketing Non-Timber Forest Products
An American Land Ethic: Protecting the Family Farm
Taxing Issues
Timber Talk
Tools & Techniques
Wildlife Matters
Gadgets & Gear

Tree Farmer - May/June 2008