investing in forest fertilization: tools, measures, analyses by ralph winter forest practices branch...
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Investing in Forest Investing in Forest Fertilization: Fertilization:
tools, measures, analysestools, measures, analyses
Investing in Forest Investing in Forest Fertilization: Fertilization:
tools, measures, analysestools, measures, analyses
By Ralph WinterBy Ralph Winter
Forest Practices BranchForest Practices Branch
July 25, 2005July 25, 2005July 25, 2005July 25, 2005
ObjectivesObjectivesObjectivesObjectives
review the growth and yield tools that we usereview the growth and yield tools that we use review stand level outcomesreview stand level outcomes review forest level outcomesreview forest level outcomes review industry commentsreview industry comments summarysummary
Ministry has comprehensive Ministry has comprehensive growth and yield toolsgrowth and yield tools
Ministry has comprehensive Ministry has comprehensive growth and yield toolsgrowth and yield tools
These tools help integrate These tools help integrate biological information biological information with treatment effect and with treatment effect and stand management stand management actions actions
Tree and Stand Simulator Tree and Stand Simulator (TASS) and TIPSY are (TASS) and TIPSY are the primary tools to the primary tools to evaluate stand treatmentsevaluate stand treatments
Typical TIPSY outputTypical TIPSY outputTypical TIPSY outputTypical TIPSY output
Volume/age information from Volume/age information from TIPSYTIPSY
Volume/age information from Volume/age information from TIPSYTIPSY
Volume/age information from Volume/age information from TIPSYTIPSY
Volume/age information from Volume/age information from TIPSYTIPSY
Typical TIPSY outputTypical TIPSY outputTypical TIPSY outputTypical TIPSY output
Analysis of a fertilized spruce plantation at age 50 Analysis of a fertilized spruce plantation at age 50 compared to untreated. A volume response at age 70 of compared to untreated. A volume response at age 70 of
16 cubic metres.16 cubic metres.
Analysis of a fertilized spruce plantation at age 50 Analysis of a fertilized spruce plantation at age 50 compared to untreated. A volume response at age 70 of compared to untreated. A volume response at age 70 of
16 cubic metres.16 cubic metres.
Analysis of a fertilized spruce plantation at age 35 Analysis of a fertilized spruce plantation at age 35 compared to untreated. A volume response at age 70 of compared to untreated. A volume response at age 70 of
17 cubic metres.17 cubic metres.
Analysis of a fertilized spruce plantation at age 35 Analysis of a fertilized spruce plantation at age 35 compared to untreated. A volume response at age 70 of compared to untreated. A volume response at age 70 of
17 cubic metres.17 cubic metres.
The Internal Rate of Return for The Internal Rate of Return for fertilization is dependant on time to harvestfertilization is dependant on time to harvest
The Internal Rate of Return for The Internal Rate of Return for fertilization is dependant on time to harvestfertilization is dependant on time to harvest
0
5
10
15
20
10 15 20 25 30 35 40 45
Number of years until harvest
IRR
(p
erce
nt)
IRR Financial
Spruce plantaions - 100 km - SI 19.6
5% IRR can be achieved if time to harvest is less than 35 years -
30 to 40 year Govt bond rates are at 4.73%
Silviculture affects conditions Silviculture affects conditions produced at the forest levelproduced at the forest level
m3 (millions)2.5
1.0
2.0
1.5
0.5
01 2 3 4 5 6 7 8 9 10 11
LRSY
untreatedharvest
schedule
treated LRSY
current AAC is maintained longercurrent AAC is maintained longer
decades
treated harvest schedule
Allowable cut effect - Allowable cut effect - sustain harvest levels longer and 5.9 % increase sustain harvest levels longer and 5.9 % increase
in the midtermin the midterm
Allowable cut effect - Allowable cut effect - sustain harvest levels longer and 5.9 % increase sustain harvest levels longer and 5.9 % increase
in the midtermin the midterm
Cranbrook TSACranbrook TSA
Forest level analysis - TFL 52Forest level analysis - TFL 52Forest level analysis - TFL 52Forest level analysis - TFL 52
TFL 52 commentsTFL 52 commentsTFL 52 commentsTFL 52 comments
TFL 52 commentsTFL 52 commentsTFL 52 commentsTFL 52 comments
Other factors that have been analysed in Other factors that have been analysed in comprehensive silv strategiescomprehensive silv strategies
Other factors that have been analysed in Other factors that have been analysed in comprehensive silv strategiescomprehensive silv strategies
direct and indirect jobs direct and indirect jobs income tax generatedincome tax generated wildlife habitatwildlife habitat biodiversitybiodiversity
Log quality profilesLog quality profiles changes in harvest changes in harvest net revenue impacts net revenue impacts stumpagestumpage
SummarySummarySummarySummary
fertilization research is included in GY & forest models. fertilization research is included in GY & forest models. models are used to forecast a variety of measures including models are used to forecast a variety of measures including
volume, value, revenue, ROI and jobsvolume, value, revenue, ROI and jobs analyses indicate that fertilization can have a positive impact analyses indicate that fertilization can have a positive impact
when done at the right sites for the right reasonswhen done at the right sites for the right reasons every tree to be harvested in the next 20-60 years is in the every tree to be harvested in the next 20-60 years is in the
ground today. Fertilization treatments need to commence ground today. Fertilization treatments need to commence soon if significant short or mid term timber supply soon if significant short or mid term timber supply improvements are desired improvements are desired
operational support from industry for forest fertilizationoperational support from industry for forest fertilization
Industry comments in FIA Industry comments in FIA submissionssubmissions
Industry comments in FIA Industry comments in FIA submissionssubmissions
“Increase wood volume and utilization. This will increase product output and reduce recovery costs. Also, reduce rotation age” - Bonaparte Kamloops TSA
"Fertilization is a silviculture treatment that can be effectively used to increase the merchantable yield and value of established forests". - TFL 14
“Operational Fertilization programs have been recognized as a high priority for the future timber supply issues through the TSA silviculture analysis” - Westfraser
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