Economic evaluation of growing stock and maturity ages of pine and oak stands

Abstract

Introduction

In modern conditions, the maturity age of stands should be determined not only by purely forestry criteria. A monetary valuation of timber stocks, depending on the stands’ maturity and accordingly, the age of felling, is an objective necessity. From an economic point of view, it is important to know how long financial resources are expressed (represented) in the form of a tree stock. The effective use of these resources (maximizing income) will mainly depend on the felling distribution over certain periods. Overcoming the identified shortcomings and obstacles to the implementation of monetary criteria in determining the maturity and felling ages of forest stands, first of all in the operational forests, will help to increase the economic efficiency (profitability) of forest enterprises and raise revenues to the state and local budgets.

The aim of the study was monetary valuation of growing stocks of Scots pine and English oak wood at the age of main-use felling according to the current and projected standards and economic justification of the maturity ages of the respective stands in natural zones.

Materials and Methods

The method of economic evaluation of maturity ages is based on generalized calculations on the example of the enterprises subordinated to Kharkiv (Forest-Steppe and Steppe natural zones) and Chernihiv (Polissia and Forest-Steppe natural zones) Regional Departments of Forestry and Hunting by current and projected maturity ages and on their further comparison for the two main tree species in Ukraine, namely Pinus sylvestris L. and Quercus robur L. The economic evaluation was carried out by every 10 years for the period 2010–2040, with the determination of the estimated area of stands for all forest categories: nature conservation, recreational, health-improving, protective and operational ones.

For the calculations, the relevant indicators were determined for the areas, total stocks of stands and their distribution by size and quality categories at a particular maturity age. The cost of the stock of wood per 1 ha according to the commodity-assortment structure of the basic 2010 year was taken into account in the 2018 rent rates. Based on the indicators of the basic period, the value of the total timber stocks was calculated, taking into account the respective areas by maturity ages and such periods as 2020, 2030 and 2040.

Results

The calculations allowed determining the areas, stocks of stands, the cost (economic) assessment of growing stock by projected and current maturity ages of pine and oak in the state forest enterprises of Kharkiv and Chernihiv Regional Departments of Forestry and Hunting. When establishing the maturity of forest-forming tree species, it is necessary to apply a comprehensive approach using both mensuration indicators of stands and their economic evaluation. The methodological approach to the economic justification of maturity ages is based on projected changes in stands and timber stocks in the 10-year period up to 2040 (baseline – 2010) for all forest categories. The feasibility of using economic valuation methods along with forestry and mensuration indicators in determining maturity ages is grounded.

Conclusions

There is a general tendency of increasing the value of timber stocks in projected maturity ages in comparison with the current norms, starting from 2030–2040. The “delayed” effect of the growth of cost indicators is caused by the delay of the deadlines of the main-use felling, as the project involves the raise of the maturity age by 1–2 classes according to the mensuration indicators of stands in Polissya and Forest-Steppe. At the same time, the differentiation of projected maturity ages by the 1st and higher capacity classes for Scots pine and seed English oak significantly influenced the distribution of areas and stocks of stands as well as commodity and assortment structure of timber, which, in turn, reflected on the value of timber reserves. The results of the economic calculations indicate the feasibility of using the projected maturity ages.

6 Tables, 12 Refs.

Key words: main-use felling, commodity structure, forest category, rent, cost indicators, comparative effectiveness.