Economics of Effective Thinning of Shortleaf Pines in Ozark and Ouachita National Forests of Western Arkansas and Southern Oklahoma

Abstract

We used Weibull distribution to find the diameter classes and conducted Weibull parameters calculations. Simulation was done after entering the frequency and class midpoints in the SLPSS (Shortleaf Pine Stand Simulator). We conducted SLPSS simulations and NPV/BLV calculations to find optimal rotation age and best stocking. This will help the forest landowners to know when they can avail the maximum from a particular investment. Tax impact study will help the government in determining tax incentives. Optimal rotation age for shortleaf pines was achieved for basal area classes 30, 60, 90 and 120. Oklahoma's traditional timber market is in a state of decline. The recession and the low demand in the housing market affected the market adversely. It is necessary to give tax incentives to landowners to prevent them from converting too much forest land to other purposes. As the thinning regime increased from one thinning through three thinnings, at a tax rate of 5% and an interest rate of 4%, intense thinning regimes reduced the land expectation value under modified tax compared to the treatment without thinning. Before thinning, Bare Land Value and Holding values were maximized at different rotation ages. After thinning, Net Present Value, Bare Land Value and Holding value were maximized at the same rotation ages in all these thinning regimes as presented.