Economic analysis of stand establishment for Scots pine

Abstract

Experimental data, a process-based forest growth model, and stand-level economic optimization were combined to investigate financial returns from investments for establishing Scots pine (Pinus sylvestris L.) stands in southern Finland. Four regeneration methods (planting, sowing, and natural regeneration with 25 or 100 seed trees·ha–1) and three intensities of soil preparation (unprepared, conventional harrowing, intensive harrowing) are compared. At a 1% interest rate, artificial regeneration by planting or sowing and high investment in soil preparation yielded the highest net present values. Natural regeneration involves low material and labor costs and becomes the optimal regeneration method at a 3% interest rate. Sowing and natural regeneration yielded equally good economic outcomes at a 5% interest rate. Owing to overlapping rotation periods, natural regeneration with a high number of seed trees yielded a long-run timber supply comparable to that obtained with artificial regeneration. However, constraints limiting density and retention time for seed trees involve additional costs with natural regeneration. Optimal thinning aimed at artificial regeneration may provide an attractive option for converting the stand to natural regeneration.