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Using Financial Analysis to Assess the Feasibility of Implementation of Ecosystem Management

Issues:

  • Treatments are proposed for millions of acres of small diameter densely stocked stands in western forests.
  • Ecological, social, and economic considerations are important in evaluating treatment options for these stands.

Background: Financing ecosystem treatments in small-diameter stands remains a challenge because the costs of sale preparation, harvesting and manufacturing are higher and the product recovery is lower than for larger trees. Good information about all aspects of operations involved in ecosystem management treatments is needed to implement ecosystem management and to avoid the expense of preparing timber sales for which there are no buyers.

Objectives:

  • Develop software for Financial Evaluation of Ecosystem Management Activities (FEEMA) to sort combinations of treatments, stand conditions, and harvesting requirements by their estimated value to potential timber purchasers.
  • Develop data and models related to important FEEMA data requirements, i.e., logging costs, product prices, and manufacturing costs.
  • Use FEEMA to assist NFS natural resource staffs better understand the viability of their proposed operations.

Stand of trees

Current Status:Completed and fully documented FEEMA model is available for download from a PNW website. Analysis of treatment options is currently being done for thinning small diameter stagnated stands on the Colville NF as part of the CROP research program. Westside and Northern California variants of the model are under development.


Collaborators: Colville NF, Ochoco NF, Vaagen Bros. Lumber, UC Davis, U Idaho, U Montana, NFS R-6, Rocky Mountain Research Station, Forest Management Service Center, Economics of Joint Production and Ecologically Sustainable Production of Forest Resources teams (PNW).

Contact:Roger Fight 503-808-2004