Document Type

Conference Proceeding

Publication Date

2000

Abstract

The objective of this study is to compute the real annual rates of return from mature, undisturbed timberlands in Mississippi during a 17-year period (1977-1994). This was done using Southern Research Station, Forest Inventory and Analysis data on timber volumes and Timber Mart-South data on timber prices. Simple and adjusted financial maturity models were used to estimate rates of return. Average annual rates of change in value were computed and compared for four forest types across Mississippi. The average annual rate of change in volume was also computed for these stands and compared to the financial rates of return. Three distinct time periods were considered: 1977-1987, 1987-1994, and 1977-1994. For the 1977 to 1987 period, the average annual real rate of return of all forest types was 6.8% using simple financial maturity and 3.5% using adjusted financial maturity. For 1987 to 1994, the real rates of value change were much higher – 18.6% using simple financial maturity and 11.3% using adjusted financial maturity. Average annual real rates of return for the entire study period, 1977 to 1994, were 13.8% using simple financial maturity and 8.1% using adjusted financial maturity methods.

Comments

Hartsell, A.J., and S.H. Bullard. 2000. Financial returns on timberlands in Mississippi between 1977 and 1999. In: Proc. South. Forest Econ. Workshop, April 18-20, 1999, Biloxi, MS, pp. 277-283.


Share

COinS

Tell us how this article helped you.