Rate of Return and Trees
Current Hickory Future
DBH Value ($) DBH Value ($) Ten Year
(inches) (inches) RoR
6 $1.49 8 $3.86 9.99%
7 $2.49 9 $5.43 8.11%
8 $3.75 10 $2.75 -3.07%
9 $5.27 11 $3.55 -3.87%
10 $2.67 12 $4.46 5.28%
11 $3.45 13 $10.82 12.11%
12 $4.33 14 $12.99 11.62%
13 $10.51 15 $15.34 3.86%
14 $12.61 16 $23.97 6.64%
15 $14.89 17 $27.62 6.37%
16 $23.27 18 $31.53 3.08%
17 $26.82 19 $35.68 2.90%
18 $30.61 20 $40.08 2.73%
19 $34.64 21 $44.73 2.59%
20 $38.91 22 $49.63 2.46%
21 $43.43 23 $54.78 2.35%
22 $48.18 24 $60.18 2.25%
23 $53.18 25 $65.83 2.16%
24 $58.43 26 $71.73 2.07%
25 $63.91 27 $77.88 2.00%
26 $69.64 28 $84.27 1.93%
27 $75.61 29 $90.92 1.86%
28 $81.82 30 $97.82 1.80%
29 $88.27 31 $104.97 1.75%
30 $94.97 32 $112.36 1.70%

Future DBH and value assume 2 inches diameter growth in ten years. The rate of return is based on the assumption of grade improvement based on DBH parameters where:

  • <9.6"=pulpwood
  • 9.6-12.5"=F3 log grade
  • 12.6-15.5"=F2 log grade
  • >15.6"=F1 log grade.

The dollar values and rates of return given above are based on a model. They are ESTIMATIONS of the first sixteen foot log value. The values for your timber/stand will almost certainly differ. BEFORE you sell, CONSULT a licensed, qualified forestry professional.  Rate of return typically increases as the trees grow into higher grade classes assuming they are of high enough quality.  In current market conditions, small hickory sawlogs are worth less than pulpwood, therefore there is a negative rate of return.

 

The graphs below present a comparison of theoretical rates of return based on the stated various growth and quality improvement assumptions.  For instance, if a stand were thinned according to a silvacultural prescrition it might average 3.5 inches of growth vesus just 2.5 inches of growth if no stand improvement were carried out.  At the other end of the spectrum would be to look at a stand of poor quality trees with no stand improvement that yielded only minimal growth and only pulpwood quality logs.

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