Short-Rotation Forest Plantations-Economic Feasibility in Eastern Colorado

ABSTRACT

This study examines the economic feasibility of short-rotation intensive culture tree plantations as an alternative crop for farmers and ranchers in eastern Colorado. Numerous wood biomass production scenarios were evaluated using standard economic criteria. All scenarios gave negative economic results even when including a federal subsidy program. The best two scenarios, one irrigated and the other not, applied herbicides and fertilization, and produced wood chips as a product using a 10-year rotation. Compared with other studies land and harvest costs were proportionally less, however unit production costs were higher. The overall economic analysis was most sensitive to changes in yields and market prices. While the economic performance is marginal, rural landowners in eastern Colorado may still wish to consider these plantations given their substantial environmental and sustainability benefits. A reevaluation should be conducted if more comprehensive yield information becomes available or there are changes in technology or market opportunities.

KEYWORDS:

• Economics
• short-rotation
• tree plantations
• environmental benefits
• Colorado