Crop Tree Management in West Tennessee: A Traditional Financial Analysis

Crop tree management was designed to fulfill a combination of goals such as wildlife, aesthetics, and timber management. This silviculture method was designed for small woodlots with high value species and can be easily understood by non-industrial private landowners. It focuses on selecting and releasing trees that will yield multiple benefits to the landowner.

The purpose of this study was to determine if crop tree management on an upland oak site in west Tennessee was a financially attractive option for individual landowners. The primary objective of this study was to determine the profitability of crop tree management by examining different treatments (untreated, fertilization, release, release and fertilization) at different rotation lengths (50-60-70-80). Net present value was the chosen the criterion.

Net present values were also examined with price increases of one and two percent to see exactly what level of price increase would be needed to cover the costs of a specific treatment. Stand level rates of value increase for the crop trees from the untreated stand were compared to rates of value increase for the crop trees in the treatments in order to determine differences in when financial maturity occurred due to the treatment application and increases in quality.

Results showed that the release treatment was the most financially attractive investment for each rotation length if prices remained constant or if a one percent price increase occurred. A two percent price increase made fertilization the most financially attractive investment.

The release and release fertilization treatments showed lower rates of value increase than the control for each rotation length. The increased growth due to the treatment application increased the amount of high grade sawtimber, faster, yielding higher present values, sooner, than the control treatment. Therefore, the crop trees in the release and release fertilization treatment reached financial maturity faster than the control and the fertilization treatments.