The Economic Factors which Influence the Type of Timber Grown and the Methods of Growing it

The most important decision to be taken is the decision whichleads to the initial investment. In private forestry, deathduties continue a powerful factor in economics. In the ForestryCommission it could be argued that, after abandonment of theneed to form a strategic reserve, interest-earning capacitywas the main reason for investment and that the Faustmann testshould be applicable but this would imply that afforestationwas competing freely with other new investments which is notso. The specifications of firm buyers are likely to determinethe type of timber grown and the technical rotation to takeprecedence over all others. As buyers' specifications change,management must be flexible with, the writer considers, a biasin favour of high quality rather than low.