Present value of regrowth eucalypt forest in southern Tasmania

Summary

Costs and returns at 1980/81 prices and yield data were obtained for 41 plots, aged 24–81 years, of even-aged high quality Eucalyptus regnans/E. obliqua forest in southern Tasmania. The present value of each of these plots was determined at a variety of discount rates from 1% to 20%. Even at moderate rates (5–6%), the high regeneration cost in these forests ($283/ha) dominated the computation of present value because this cost is compounded over the whole rotation and is by far the largest cost involved in managing these forests. Because of this, variation in present value due to differences in age and site productivity of the plots was much reduced. At discount rates of 5–6%, present value was—300 to—500 $/ha. Present value of these forests might be increased by developing more cost efficient management practices, by altering royalties on harvested timber, by thinning the forest to provide intermediate returns or by using timber that is presently wasted as fuelwood or pulpwood.