Costs & Returns for Management Activities on a Hypothetical 100 Acre Woodlot
Service	Cost/Year		Benefit	Return/Year
Ch 61 Management Plan 10 Yrs @ $600+$6/Ac Land Tax @ 5% Ch 59 Rate 8% Stumpage Tax for $50/Ac/Yr			Eliminate Ch 59 Tax Ch 59 Tax @ $700/Ac, Tax Rate of $18/$1000
	$120
	$63
	$400			$1,260
Boundary Blazing & Painting 10 Yrs @ $60/1000 LF			Lower Risk of Timber Trespass Identify Property
	$50			$50
Mark & Tally Timber, Administer Sale Every 10 Yrs 3 Mbf/Ac @ $20/Mbf			Increased Value from Competitive Bidding*
	$600			$600
Commercially Thin & Weed Residual Stand with Above Timber Sale 2 Cd/Ac @ $5/Cd			Increased Rate of Value Growth on Residual Stand from Harvest & Thinning 40% Above Base $35/Ac/Yr
	$100			$1,400
Recreational Development Plan 10 Yr Cost = $1000			Quicker Sale of Property Interest for .5 Yr @ 8% & $700 per Ac Reduced to Annual Cost/10 Yrs
	$100			$280
Inventory Data Processing, Simulations & Analysis 10 Yrs @ $200+$1/Ac			Quicker Sale of Property Internest for .5 Yr @ 8% & $700 per Ac Reduced to Annual Cost/15 Yrs
	$20			$280
TOTALS	$1,453			$3,870
Discounted 10 Yr Costs (@ 8%)	$9,751		Compounded 10 Yr Returns (@8%)	$56,065
Rate of Return on Costs	19.1%
NOTE:  These costs and returns are those attributable to management.  Returns are over and above those from unmanaged land, which, as indicated above, would be about $35 per acre per year or $3,500 per year for this hypothetical 100 acre property.  Therefore the total annual return would be $7,730. *This is a minimum amount for increased value from competitive bidding.  Studies have shown that after-cost returns from bid sales are the in range of 20-40% above non-bid sales.  See Free Silviculture page. Karl Davies August, 1998