This file was created by scanning the printed publication. Errors identified by the software have been corrected; however, some errors may remain. TIMBER QUALITY AND PRUNING: AN ANALYSIS OF MANAGEMENT REGIMES FOR THE SIUSLAW NATIONAL FOREST Roger D. Fight Thomas D. Fahey Stuart Johnston for regimes of about 150 trees per acre. All regimes assume a precommercial thinning at age 11 to achieve good spacing. These regimes were analyzed with and without prunin~. The pruning regimes involved pruning 70 trees per acre to a height of 18 feet in one lift. The age of pruning varied from 17 to 22 depending on height and crown length. In each case the pruning age was the earliest age at which the pruning could be done without removing more than onethird of the live crown. Although regimes of pruning involving more than one lift may be preferable, the existing recovery data are directly applicable only to regimes of one lift. Predictions of limb sizes were made using Maguire's (in press) limb size prediction equation. Initial analysis of commercially thinning stands with initial stocking of 250 trees per acre showed that they produced stands much like those with lower initial stocking and the present net worth was lower. The results of the analysis of these thinning regimes are not included in this paper. ABSTRACT The Siuslaw National Forest is a predominantly Douglasfir (Pseudotsuga menziesii [Mirb.] Franco var. menziesii) forest in coastal Oregon. Excluding riparian areas, the forest is 22 percent 50-year site index 130, 65 percent site index 119, and 13 percent site index 108. The current forest plan calls for harvesting managed stands at 60 to 80 years of age. An analysis of stocking and pruning showed that the expected financial return to pruning on site 130 would be very attractive. The expected returns from pruning are greater than differences related to stocking for unpruned stands. Although the returns to pruning on the lower sites are less, the same general conclusion applies to those sites as well. Pruning Douglas-fir stands with light stocking on high sites may be the most financially attractive timber production investment that exists in the Pacific Northwest. INTRODUCTION PRODUCT RECOVERY This study of the Siuslaw National Forest provides the first analysis of management regimes for coastal Douglasfir (Pseudotsuga menziesii [Mirb.] Franco var. menziesii) based on product recovery information for managed stands (Fahey and others, in press) and pruned stands (Cahill and others 1988). Management regimes for Douglas-fir called for in the current forest plan are intended to result in 250 well-spaced trees per acre after precommercial thinning. Stands are expected to be harvested at 60 to 80 years. The purpose of our analysis was to explore a wide range of initial stocking levels and to look at the financial return of adding pruning to each stocking level. The volume and grade recovery of lumber from regimes without pruning were based on the results of a mill recovery study of young-growth Douglas-fir (Fahey and others, in press). Grade recovery is determined by knot size, log diameter, and the percent of the log that is juvenile wood. We used grade recovery based on machine stress rating to ensure that the effect of juvenile wood on lumber strength and stiffness would be recognized. Knot size limits the strength and therefore the grade of structural lumber. The size of knot that is permitted in a particular grade oflumber, however, is proportional to the width of the item. Because larger logs can yield a higher proportion of wide items, these two effects offset each other to the extent that the difference in value between lumber from large logs with large knots and small logs with small knots is minor. Volume recovery is estimated based on log size and taper. The geometry of sawing rectangular boards from a tapered cylinder determines this relationship. Once a log has been squared up there is little further loss in edging boards to eliminate wane, therefore larger logs produce more lumber per unit oflog volume. Logs with lower taper have less wood lost to edgings, trim, and short pieces and therefore yield more lumber per unit oflog volume. Grade recovery for pruned logs was based on the results of a mill recovery study of pruned Douglas-fir (Cahill and others 1988). The grade recovery of pruned logs is predicted based on the percentage of the log volume in clear wood laid down after pruning and the size of the log. The primary REGIMES Regimes for sites 130 and 108 on a 50-year site index were analyzed. Numbers of trees per acre following precommercial thinning were 100, 150,250, and 500. Yields are from the DFSIM stand simulator (Curtis and others 1981). Although the yields are for regimes that fall outside the range of data from which DFSIM was developed, the yields were judged acceptable. The yields are maximum Paper presented at the National Silviculture Workshop, Cedar City, UT, May 6-9,1991. Roger D. Fight and Thomas D. Fahey are Research Foresters, Pacific Northwest Research Station, Portland, OR; Stuart Johnston is a Silviculturist, Mapleton Ranger District, Siuslaw National Forest, Mapleton, OR. 93 Soil Expectation Value, Site 130 No Pruning effect of pruning on grade recovery is to reduce the amount oflumber in high structural grades and increase the amount oflumber in select appearance grades. The financial effect of pruning is therefore sensitive to the difference in price between the high structural grades and the select appearance grades. 2500 2000 1500 LUMBER PRICE TRENDS f? ~ 0 C The price of lumber in general has increased in real terms over the past 200 years at a rate of about 1.5 percent per year as shown by the producer price index for lumber (Ulrich 1990). Projections oflumber prices from the Timber Assessment Market Model reported in Haynes and Fight (in press) show these trends continuing for another 20 years and then remaining relatively constant through the year 2040. When average price for lumber increases, the difference between grades tends to increase as well. Western lumber markets can be characterized as declining in quality and showing increasing premiums for the highquality material. The decline in quality is most apparent in Douglas-fir where the proportion of select lumber has declined from about 15 percent in 1972 to less than 3 percent in 1990 (Haynes and Fight, in press; Warren 1991). Although the evidence from markets for lumber appears to point to a continuation or increase in premiums for quality, there can be no guarantees. If one takes the opposite point of view, however, the argument will have to be made on other grounds because the market data are not consistent with a view that premiums for quality are declining. The lumber prices used in the analysis are derived from those for the year 2040 reported in Haynes and Fight (in press). They have been modified where necessary to fit the machine stress-rating grades used in the recovery study. They are as shown in the following tabulation: Grade Selects & Shops 2100f 1650f 1450f Utility Economy . 1000 500 0 70 60 80 Harvest Age -€I- 100 tpa ~ 150tpa -+- 250 tpa -A- 500tpa Figure 1-Soil expectation value for regimes without pruning on the Siuslaw National Forest. 1.5 inches, respectively, and quadratic mean diameters breast height are 17 and 27 inches, respectively, on regimes with initial stocking of 100 and 500 trees per acre. The soil expectation value of stands with from 100 to 250 trees per acre is almost the same. With 500 trees per acre the soil expectation value is considerably less because of the cost of planting to achieve that stocking and the fact that the cubic volume at harvest is less for stocking that high. Figure 1 shows the soil expectation values for site 130. The soil expectation values for site 108 are somewhat lower, but the ranking of regimes is the same. RESULTS OF ANALYSIS Price (1989 Dollars) OF PRUNING 957 569 515 408 276 144 Butt logs from the pruning regimes we analyzed were estimated to be about 70 to 90 percent clear wood. The present net value from pruning was directly related to growth rates, because faster growing trees produce more clear wood to cover the cost of pruning. With the cost of pruning at $4 per tree the present net value from pruning 70 trees per acre on site 130 varied from less than $5 per tree for initial stocking of 500 trees per acre to more than $15 per tree for initial stocking of 100 trees per acre. Figure 2 shows the results for site 130. Although these values do not reflect any mortality of pruned trees or additional costs of keeping records on pruned stands, it appears that rates of return would still be substantially above the assumed 4 percent cost of capital. The present net values from pruning on site 108 are only two or three dollars less than on site 130, thus it appears there are many regimes where pruning would be an attractive investment opportunity with real rates of return greater than 4 percent. Because the returns to pruning are highest on stands with lowest stocking, the increase in soil expectation value of regimes with pruning increases more on regimes with lower stocking. The soil expectation value with pruning is somewhat higher with 100 and 150 trees per acre than ,'t COSTS Management costs were from recent costs experienced on the Siuslaw National Forest. Real costs of management were assumed constant at current levels. The cost of pruning was assumed to be $4 per tree. The real rate of interest used in all of the financial analysis was 4 percent. RESULTS OF ANALYSIS OF UNPRUNED REGIMES In general, regimes with higher stocking produced smaller trees with smaller knots and higher quality wood, but with about the same value of lumber per cubic foot of log. This results because of the offsetting effects of limb size on grade recovery and log size on both volume and grade recovery. For example, on site 130 maximum limb sizes are 2.2 and 94 tree. This flexibility may also be helpful in designing silvicultural regimes to meet multiple forest management objectives. One strategy that is suggested by this analysis is to have a target stocking of 150 trees per acre for those stands that might be pruned. The soil expectation value if they are not pruned is only slightly better than 100 or 250 trees per acre, however, if they are pruned the soil expectation value is almost the same as for 100 trees per acre and significantly higher than for 250 trees per acre. For stands that will not be pruned additional well-distributed trees above that target are not a problem up to 250 trees. For stands that will be pruned there is a substantial reduction in value with additional trees. Trees in excess of 250 significantly reduce financial return whether or not they will be pruned. The analysis suggests that stands with as few as 100 welldistributed trees per acre should be viewed as financial opportunities rather than regeneration failures. Pruned, these stands should have soil expectation values greater than any unpruned stand. In general the fastest growing stands and the fastest growing trees in stands are the best candidates for pruning; however, many operational questions are not answered by this analysis. Should pruning be done in one or multiple lifts? To what height should pruning be done? Which and how many trees in a stand should be selected for pruning? At what age should pruning be done? Computer programs and data that were developed during the course of this study can be used to make reasonable extrapolations addressing these questions. Present Net Value per Pruned Tree, Site 130 With 70 Pruned Trees 20~--------------------------------------~ 15 III ~ '0 c 10 5r---------______ ~ O~------------------~------------------~ 70 60 80 Harvest Age -&-100 tpa -&- 150tpa ~ 250tpa -fr-500tpa Figure 2-lncrease in present net value per tree with addition of pruning to regimes on the Siuslaw National Forest. with 250 trees per acre. The soil expectation value with 500 trees per acre is substantially less. Figure 3 shows the results for site 130. Although the soil expectation values are somewhat less on site 108 the ranking of regimes is virtually the same. CONCLUSIONS REFERENCES This analysis suggests that silviculturists have wide latitude within the range of 100 to 250 trees per acre to design regimes to accommodate multiple forest management objectives because the tradeoffs in timber values will be small. In addition, pruning is a flexible silvicultural practice. The number of trees per acre that are pruned can vary with minor effect on the financial return per pruned Cahill, J.M.; Snellgrove, T.A.; Fahey, T.D. 1988. Lumber and veneer recovery from pruned Douglas-fir. Forest Products Journal. 38(9): 27-32. Curtis, R.O.; Clendenen, G.W.; DeMars, D.J. 1981. A new stand simulator for coast Douglas-fir: DFSIM user's guide. Gen. Tech. Rep. PNW-128. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station. 79 p. Fahey, T.D.; Cahill, J.M.; Snellgrove, T.A.; Heath, L.S. [In press]. Lumber and veneer recovery from intensively managed young-growth Douglas-fir. Res. Pap. PNW-RP-437. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station. 28 p. Haynes, R.W.; Fight, R.D. [In pressJ. Price projections for selected grades of Douglas-fir, coast hem-fir, inland hemfir, and ponderosa pine lumber. Res. Pap. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station. Maguire, D.A.; Kershaw, J.A., Jr.; Hann, D.W. [In press]. An approach to predicting the effects of silvicultural regime on branch size and crown wood core. Forest Science. Ulrich, A.H. 1990. U.S. timber production, trade, consumption, and price statistics 1960-88. Misc. Publ. 1486. Washington, DC: U.S. Department of Agriculture, Forest Service. 77 p. Warren, D.D. 1991. Production, prices, employment, and trade in northwest forest industries, third quarter 1990. Resource Bull. PNW-RB-182. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station. 99 p. Soil Expectation Value, Site 130 With 70 Pruned Trees 2500 2000 - f!? 1500· ..!!! '0 c 1000 500 0 60 70 80 Harvest Age -e- 100 tpa -8-150 tpa -of<- 250 tpa -A- 500 tpa Figure 3-Soil expectation value for regimes with pruning on the Siuslaw National Forest. 95