Evaluation of forestry programs: A case study of the forestry incentives program in Massachusetts

A general methodology is proposed to evaluate forestry programs which are aimed at increasing timber supply from non-industrial private forest lands. A financial analysis of the forestry activities included in the program or a questionnaire submitted to the landowners should serve to establish what would have been done in the absence of the program. An economic analysis aggregating the marginal benefits and costs for each program participant can be related in different benefit—cost ratios.The methodology is applied to the evaluation of the Forestry Incentives Program (FIP) in Massachusetts. The study shows that the efficiency benefit—cost ratio is > 1 at 4% and 6.625% and that the landowner's management decisions are crucial to the performance of the program.