3.3 Forest Economics

Question 1

in regards to Financial terms, what term might one use to quantify aspects of the forest?

Answer 1

Valuation

Question 2

To make sound management decisions via valuation what is an indicator one could rely on?

Answer 2

Economic Indicators

Question 3

What are 3 important factors to consider when trucking?

Answer 3

1. Trailer configuration
2. Distance
3. Fuel prices

Question 4

What is the base rate charge for trucking? additionally, how many additional dollars will be charged for every 32 km travelled?

Answer 4

$15/GMT
$2-3/GMT

Question 5

what is the generic value a lumber will will apply to log pricing to account for road building/ upgrading costs?

Answer 5

$3.00/GMT

Question 6

How much can a forestry manager expect to spend on road building per GMT? How about for road repair?

Answer 6

$5.60/GMT
$0.93/GMT

Question 7

what are the 5 factors that effect road building?

Answer 7

1. Road Type
2. Terrain conditions
3. Amount of gravel Required
4. Number of Turnarounds
5. # of water Crossings

Question 8

The fee paid by an individual or company for the timber they harvest from public forests or privately owned forested land would be a….?

Answer 8

Stumpage Fee

Question 9

Another name for stumpage fee’s are?

Answer 9

“Timber Royalties”

Question 10

in regards to reforestation and thinning practices, what types of silvicultural activities might take place in a block?

Answer 10

1. Site prep (Scarification)
2. Planting
3. Early crop control
4. Pre-commercial thinning
5. commercial thinning

Question 11

What is the general value of reforestation and thinning practices in this region?

Answer 11

$3.50

Question 12

After all operational costs are accounted for, what is the total mill gate cost for spruce fir logs within 50km of the mill?

Answer 12

$97.20