Resource Number: 14444
Title: Mid-rotation rate of return estimates with single nitrogen+phosphorus or nitrogen+phosphorus+potassium fertilizer application in loblolly, longleaf, and slash pine stands
Description: Summary
Of the three factors that go into estimating a rate of return for a single fertilization
investment, the cost per acre factor is the easiest to come up with. The users of this publication
may want to run a number of scenarios for a pine stand that they are considering to fertilize to
feel more comfortable with the decision they make. For example (once the cost per acre is
determined); use two “extra growth” rates of 1.0 and 1.5 tons/ac/yr for slash pine and two
“average stumpage prices” of $20 and $25/ton for 20-28-year-old clear-cut wood. Using the
$120 cost/acre table 5, the rates of return would be 3.66, 6.59, 9.05, or 12.14 %. The landowner
would then decide if these rate or return estimates are acceptable or not. Since the “average
stumpage price” used is for wood sold eight years from the fertilizer application and investment;
the rate of return estimates here are nominal, meaning they are directly comparable to stock
yields, CDs, and savings yields.
Last Updated: February 11, 2021
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Domain(s)/Area(S):
- Forestry
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